Managerial AccountingChapter 9Standard Costing : a Managerial Control Tool

Standard Costing

• Unit StandardUnit standard adalah basis atau fondasi dalam penentuan flexible budget. Unit standard memiliki 2 komponen utama : quantity standard dan price standard.1. Quantity Standard adalah jumlah input yang digunakan per unit output yang dihasilkan.2. Price Standard adalah harga yang harus dibayar untuk setiap input yang digunakan.

• Bagaimana standard terbentuk- Quantity standards come from experience, studies, & personnel.- Price standards come from operations, purchasing, personnel, & accounting.

• Types of standard1. Ideal Standard adalah standard yang mengharapkan terjadinya efisiensi secara maksimum dan hanya dapat dicapai jika semua operasi berjalan dengan sempurna.2. Currently Attainable Standard adalah standard yang dapat dicapai dalam kondisi operasi yang efisien (kondisi operasi normal)

Why Standard Costing?

• Ada 2 alasan mengapa sistem standard costing diterapkan :1. Planning & Control,

- To improve performance measures- To give manager more information by decomposing total

variances into price & usage variances.2. Product Costing

- To use unit cost system that is readily available in pricing• Standard product cost

Standard cost per unit adalah jumlah dari standards costs untuk direct materials (DM), direct labor (DL), & overhead

Variance Analysis : General Description• Diagram Varians• Penjelasan Favorable dan Unfavorable Variance• Control limit

Variance Analysis : Materials

• Diagram Material Varianc• Kapan perlu menghitung price variance material

Variance analysis : Labor

TOTAL LABOR VARIANCEACTUAL COST OF LABOR

HOURSSTANDARD COST OF LABOR

HOUR

ACTUAL LABOR COST BUDGETED COST OF ACTUAL LABOR HOURS

FLEXIBLE BUDGET OF LABOR HOURS

ACTUAL LABOR HOURS X STANDARD RATE

BUDGETED LABOR HOURS ALLOWED FOR ACTUAL

OUTPUT X STANDARD RATE

LABOR RATE VARIANCE EFFICIENCY VARIANCE

TOTAL LABOR VARIANCE

ACTUAL LABOR HOURS X ACTUAL RATE

Variance Analysis : Variable Overhead Cost

TOTAL VARIABLE OVERHEAD VARIANCE

ACTUAL VARIABLE OVERHEAD

STANDARD COST OF VARIABLE OVERHEAD

ACTUAL VARIABLE OVERHEAD

BUDGETED COST OF ACTUAL VARIABLE

OVERHEAD

FLEXIBLE BUDGET OF VARIABLE OVERHEAD

ACTUAL HOURS X STANDARD RATE

BUDGETED HOUR ALLOWED FOR ACTUAL OUTPUT X

STANDARD RATE

SPENDING VARIANCE EFFICIENCY VARIANCE

TOTAL VARIABLE OVERHEAD VARIANCE

ACTUAL HOURS X ACTUAL RATE

Variance analysis : Fixed Overhead costTOTAL FIXED OVERHEAD VARIANCE

ACTUAL FIXED OVERHEAD

BUDGETED FIXED OVERHEAD

APPLIED FIXED OVERHEAD

ACTUAL HOURS X STANDARD RATE

STANDAR HOURS X STANDARD RATE

SPENDING VARIANCE VOLUME VARIANCE

TOTAL FIXED OVERHEAD VARIANCE

ACTUAL FIXED OVERHEAD APPLIED FIXED OVERHEAD

Appendix : Accounting for Variance

MATERIAL ACTUAL QUANTITY X STANDARD PRICEMATERIAL PRICE VARIANCE ACTUAL QUANTITY (ACTUAL PRICE – STANDARD PRICE)

A/P ACTUAL QUANTITY X ACTUAL PRICE

DIRECT MATERIAL

MATERIALS PRICE VARIANCE

MATERIALS EFFICIENCY VARIANCE

WIP STANDARD PRICE X STANDAR QUANTITYMATERIAL EFFICIENCY VARIANCE STANDAR PRICE (ACTUAL QUANTITY – STANDARD QUANTITY)

MATERIAL STANDAR PRICE X ACTUAL QUANTITY

Appendix : Accounting for Variance

PAYROLL XXXPAYROLL PAYABLE XXX

DIRECT LABOR

WIP STANDARD RATE X STANDAR HOURSLABOR RATE VARIANCE ACTUAL HOURS (ACTUAL RATE – STANDARD RATE)LABOR EFFICIENCY VARIANCE STANDARD RATE (ACTUAL HOURS – STANDARD HOURS)

MATERIAL ACTUAL RATE X ACTUAL HOURS

Appendix : Accounting for Variance

FACTORY OVERHEAD

APPLIED FOH (FOH-A) STANDARD RATE X STANDAR HOURSSPENDING VARIANCE VARIABLE SPENDING VARIANCE + FIXED SPENDING VARIANCEVARIABLE EFFICIENCY VARIANCE STANDARD VARIABLE RATE (ACTUAL HOURS – STANDARD HOURS)FIXED VOLUME VARIANCE STANDARD FIXED RATE (ACTUAL HOURS – STANDARD HOURS)

ACTUAL FOH (FOH–C) ACTUAL RATE X ACTUAL HOURS

SPENDING VARIANCE ACTUAL HOURS (ACTUAL RATE – STANDARD RATE)

Case 9-14Case 9-20