Standard costing: past paper questions
Real questions on standard costing
The newest 20 of 33 written questions. Open one to see it on the real paper.
- 9706/43 · October/November 2025 · Q1b(i)[2]
material price (i)
See it on the paper → - 9706/43 · October/November 2025 · Q1b(ii)[2]
material usage
See it on the paper → - 9706/43 · October/November 2025 · Q1b(iii)[2]
labour rate
See it on the paper → - 9706/43 · October/November 2025 · Q1b(iv)[2]
labour efficiency. Additional information The fixed overhead variance is analysed as follows: $ Fixed overhead expenditure 1 000 adverse Fixed overhead volume 20 000 favourable
See it on the paper → - 9706/43 · October/November 2025 · Q1c[2]
Explain the occurrence of the fixed overhead volume variance.
See it on the paper → - 9706/43 · October/November 2025 · Q1e[7]
Advise the directors whether or not W Limited should stop using the standard costing system. Justify your answer.
See it on the paper → - 9706/43 · October/November 2025 · Q2a[5]
Calculate, to two decimal places, the unit selling price for each product using the traditional method. Additional information The sales volume of Grand was less than expected. One of the directors has learnt how using activity based costing (ABC) can affect pricing. A further analysis of the manufacturing overheads is...
See it on the paper → - 9706/42 · May/June 2025 · Q2a[14]
Complete the following table to reconcile the standard profit for April 2025 with the actual profit using the required variances. Enter each variance in either the favourable or adverse column as appropriate. $ Favourable Adverse $ $ Standard profit Sales price variance Material price variance Material usage variance L...
See it on the paper → - 9706/22 · October/November 2023 · Q4b[4]
Calculate, to two decimal places, an overhead absorption rate for each production department, using a suitable basis. Additional information The actual results for the year ended 31 August 2023 were as follows: Machining Assembly Total overheads $226 952 $267 465 Direct labour hours 28 450 72 580 Machine hours 44 120 1...
See it on the paper → - 9706/22 · October/November 2023 · Q4d[4]
Calculate the direct cost of producing one bicycle for the special order. Additional information In order to remain competitive, Andreas wishes to achieve a 30% gross profit margin on all work.
See it on the paper → - 9706/32 · October/November 2023 · Q1e[5]
Advise the directors whether or not to stop the application of factory profit. Justify your answer.
See it on the paper → - 9706/42 · October/November 2023 · Q1b[1]
Calculate the overhead absorption rate if a single rate is used.
See it on the paper → - 9706/21 · May/June 2023 · Q4e[4]
Calculate the profit made each year from Product Exe. Additional information The directors plan to make a new product, Product Wye, at this factory at the request of an important customer. The following details are available. 1 The factory will be able to operate at full capacity. 2 All units produced will be sold. 3 P...
See it on the paper → - 9706/21 · May/June 2023 · Q4f[5]
Calculate the total profit from both products which will be made in the first year if this plan is put into operation.
See it on the paper → - 9706/21 · May/June 2023 · Q4g[7]
Advise the directors whether this plan should be put into operation. Justify your answer by considering both financial and non‑financial factors.
See it on the paper → - 9706/32 · February/March 2023 · Q1a[4]
Explain two reasons why a business may apply a rate of factory profit.
See it on the paper → - 9706/31 · October/November 2022 · Q6a(i)[1]
the overhead absorption rate per direct labour hour
See it on the paper → - 9706/31 · October/November 2022 · Q6a(ii)[3]
the total standard cost of April’s production. Additional information Actual costs for April were as follows: Direct materials Direct labour Fixed overhead $ 148 500 283 500 94 000 526 000 (for 19 800 kilos) (at $9 per hour)
See it on the paper → - 9706/31 · October/November 2022 · Q6b[13]
Prepare a statement reconciling the total standard cost of production for April (as calculated in (a)(ii)) with the actual cost. Your answer should include two direct material variances, two direct labour variances and two fixed overhead variances. Workings: Additional information Adhi’s factory is in Jakarta, Indonesi...
See it on the paper → - 9706/31 · October/November 2022 · Q6c[5]
Advise Adhi whether or not he should use the same standard costs for units produced in France as for those produced in Indonesia. Justify your answer.
See it on the paper →
What examiners said
Required candidates to calculate an appropriate overhead absorption rate for each of the two production departments. Whilst most candidates were able to calculate correct figures, many did not adhere to the two decimal places rule and often did not state the per machine hour or per labour hour as an essential part of their answer.
— Examiner report, October/November 2023, 9706/22 Q4(b) (Cambridge)
Candidates required to calculate the direct cost of producing one bicycle for a special order. The task involved separate calculations for the cost of direct materials and direct labour. Whilst most candidates correctly calculated the direct material cost, candidates generally had more difficulty with the direct labour.
— Examiner report, October/November 2023, 9706/22 Q4(d) (Cambridge)
Most candidates gave the required advice. However only a few justified their decision sufficiently to be awarded more than two of the extra four marks. Many answers stated that stopping the factory profit would reduce the profit of the company. Justification points for not stopping were generally better explained than those for stopping the application of factory profit.
— Examiner report, October/November 2023, 9706/32 Q1(e) (Cambridge)
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