Linsil has produced the following operating statement reconciling budgeted and actual gross profit for the last three months, based on actual sales of 122,000 units of its single product:
The standard direct costs and selling price applied during the three-month period and the actual direct costs and selling price for the period were as follows:
After the end of the three-month period and prior to the preparation of the above operating statement, it was decided to revise the standard costs retrospectively to take account of the following.
1 A 3% increase in the direct material price per kilogram;
2 A labour rate increase of 4%;
3 The standard for labour efficiency had anticipated buying a new machine leading to a 10% decrease in labour hours; instead of buying a new machine, existing machines had been improved, giving an expected 5% saving in material usage.
【论述题】
Calculate the revised standard costs.
