Standard Costing and Variance Analysis
ICAN Management Information
14 Standard Costing and Variance Analysis practice questions covering everything you need for ICAN.
Drill Standard Costing and Variance Analysis →Sample Standard Costing and Variance Analysis questions
Kadan Nigeria Limited, a manufacturing company based in Ikeja, Lagos State, produces and sells a single standardized cleaning product named "CleanMax". The company operates a standard costing system. …
Eko Breweries Limited, a Lagos-based manufacturer of malt drinks, operates a standard costing system. The following standard cost card relates to one crate of its flagship product, 'Eko Gold', for the…
Abuja Garments Limited (AGL) manufactures school uniforms for government secondary schools in the Federal Capital Territory. The company uses a standard marginal costing system. The standard cost card…
Nnamdi Plastics Limited (NPL), located in Onitsha, Anambra State, manufactures plastic buckets for the domestic market. The company recently introduced a standard costing system and has asked you, as …
Abuja Foods Plc employs 80 workers on a standard rate of ₦1,500 per hour. The standard hours allowed per unit of output is 3 hours. In May 2024, actual output was 900 units, workers were paid ₦1,600 p…
Using the data from the previous question (standard 3 hours per unit, standard rate ₦1,500 per hour, actual output 900 units, actual hours worked 2,850), what is the Labour Efficiency Variance?
Kano Textiles Limited operates a standard absorption costing system. The following data relates to June 2024: Budgeted fixed overheads ₦4,500,000; Budgeted hours 15,000; Actual fixed overheads ₦4,800,…
A manufacturing company in Lagos sets a standard material cost of ₦450 per kg for Product X, with a standard usage of 4 kg per unit. During March 2024, the company produced 1,200 units, purchased 5,10…
Port Harcourt Refineries Plc uses a standard costing system. A favourable Material Price Variance combined with an adverse Material Usage Variance MOST LIKELY indicates which of the following situatio…
Ibadan Manufacturing Co. operates a standard marginal costing system. Standard variable cost per unit is ₦1,200 (materials ₦700, labour ₦300, variable overhead ₦200). Budgeted production and sales wer…
A company sets its sales price standard at ₦2,800 per unit with a budgeted sales volume of 3,500 units. Actual sales were 3,200 units at ₦2,950 per unit. What is the Sales Price Variance?
Using the data in the previous scenario (standard usage 4 kg per unit, standard price ₦450 per kg, actual production 1,200 units, actual usage 4,900 kg), what is the Material Usage Variance?
Eko Plastics Limited budgeted fixed production overheads of ₦6,000,000 for April 2024, based on budgeted output of 2,000 units. Actual output was 1,800 units and actual fixed overheads incurred were ₦…
Which of the following statements BEST describes a standard cost?