SCMA*2000 Lecture Notes - Lecture 30: Maserati 250F, National University Of Distance Education, Unita
Document Summary
The standard price reflects the following factors: specified quality of materials, discounts for quantity purchases, discounts for early payment, if any, transportation (freight) costs, receiving and handling costs. The standard quantity reflects the following factors: engineered (bill of materials) requirements, expected spoilage of raw materials, unavoidable waste of materials in the production process, materials in expected scrapped units (rejects). Given the price and quantity standards, the standard cost of material for one table can be determined: Standard price per unit of input x standard quantity of input per unit of output = standard direct material cost per unit of output. . 00 per board x 5. 5 boards per table = . 00 per table. The standard labour rate reflects the following factors: hourly wage rates, fringe benefits, employment taxes. The standard time should include: engineered labour time per unit, allowance for breaks, personal needs, and cleanup, allowance for setup and other machine downtime, allowance for rejects.
