Exercise 1

The Brener company sews sports jackets. The planned volume of production and sales in the month of
January was 12,000 jackets. The expected selling price was set at CZK 7,000. The consumption norm
of the basic unit material is 3 meters per jacket, the predetermined price of 1 meter of material
was set at 800 CZK. Variable overhead costs are dependent on the number of hours worked. The amount
of variable overhead costs for one hour is 200 CZK, and it takes 3 hours to sew one jacket
(standard time consumption). Fixed costs were budgeted with a limit of CZK 24,000,000.

In fact, 10,000 jackets were produced and sold, the actual unit material consumption was 30,100
meters, and the actual labor hours were 32,000 hours. The actual amount of costs and revenues was
as follows:


Actual sales revenue

                                            71 500 000 CZK

Actual unit material consumption

                                            24 170 000 CZK

The actual amount of variable overhead costs

                                            6 080 000 CZK

Actual amount of fixed costs

                                            24 250 000 CZK


Tasks:

1. Set standards for 1 jacket

2. Find out the budgeted (standard) and actual profit


Exercise 2

Calculate the amount of the direct material standard per piece of product, if you know the data on
the following items: The purchase price of 1 kg of material is 108 CZK, transportation by truck
from the supplier for a certain number of hours after the order is 13.20 CZK, receipt and handling
1.50 CZK , quantity discount CZK 2.70. The quality standard for a certain product, the production
of which includes purchased material, must take into account not only the necessary amount of this
material, but also the necessary operational waste (e.g. cutting). Material consumption for one
product is 81 kg, necessary waste 6 kg and scrap rate (waste rate) 3 kg.

Exercise 3

Calculate the amount of the product's direct personnel cost standard, which consists of labor
costs, social security contributions, and health insurance. The worker's hourly wage rate is CZK
270, bonuses and bonuses 30% of the wage rate, social security insurance 25% of wage costs, and
health insurance premiums 9% of wage costs. The time of an employee required to produce one product
is 5.7 hours, downtime 0.3 hours, maintenance of production equipment 0.9 hours, scrap removal 0.6
hours.