case study in production cost control

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April Job Sheets

April Job Sheets 2016
Total (Variable plus Fixed) Predetermined Overhead Rate $ 83.94
Direct Labor Hourly Rate $ 38.00
Exhibit 1-7.5
Exhibit 1-7.3a Exhibit 1-7.3b California Car Company
April Cost Sheets for CCC April Cost Sheets for CCC Cost of Goods Manufactured and Sold Schedule
CCC Summary Job Cost Sheet CCC Summary Job Cost Sheet April 30, 2016
Sedan Job 156 Sedan Job 157
Batch size 17 sedans Batch size 475 sedans Beginning finished goods inventory $ 323,160
Date started March 29 Date finished: April 2 Date started April 2 Date finished: March 25 Add: Cost of goods manufactured:
Date sold April 5 Date sold 82 Unsold on April 30 April direct material $ 2,062,448
Chassis Assembly Department Chassis Assembly Department April direct labor 2,320,660
Hours Date Cost Hours Date Cost April manufacturing overhead applied 5,126,216
Direct materials March 27 $ 21,800 Direct materials Various April $ 608,845 Total April manufacturing costs $ 9,509,324
Direct labor 825 March 28 and 29 31,350 Direct labor 23,825 Various April $ 905,350 Add: Beginning inventory work-in-process 122,401
Overhead applied March 30 69,251 Overhead applied April 30 1,999,871 Less: Ending inventory work-in-process 126,198
Total department costs $ 122,401 Total department costs $ 3,514,066 Cost of goods manufactured 9,505,527
Final Assembly Department Final Assembly Department Total cost of goods available for sale 9,828,687
Direct materials April 5 and 6 $ 31,427 Direct materials Various April $ 877,745 Less: Ending inventory finished goods 1,554,843
Direct labor 938 April 5 and 6 35,644 Direct labor 26,124 Various April $ 992,712 Cost of goods sold 8,273,844
Overhead applied April 30 78,736 Overhead applied April 30 2,192,849
Total department costs $ 145,807 Total department costs $ 4,063,306
Job totals 1,763 hours $ 268,207 Job totals 49,949 hours $ 7,577,371
Average cost per sedan $ 15,777 Average cost per sedan $ 15,952
CCC Summary Job Cost Sheet CCC Summary Job Cost Sheet
Compact Job 253 Sedan Job 158
Batch size 148 compacts Batch size 17 sedans
Date started April 5 Date finished: April 25 Date started April 30 Date finished: May 3
Date sold 22 Unsold on April 30 Date sold unsold
Chassis Assembly Department Chassis Assembly Department
Hours Date Cost Hours Date Cost
Direct materials Various April $ 116,920 Direct materials April 27 $ 21,695
Direct labor 4,002 Various April $ 152,076 Direct labor 857 April 27 and 28 $ 32,566
Overhead applied April 30 335,928 Overhead applied April 30 71,937
Total department costs $ 604,924 Total department costs $ 126,198
Final Assembly Department Final Assembly Department
Direct materials Various April $ 405,816 Direct materials April 1 (Next Month)
Direct labor 5,324 Various April $ 202,312 Direct labor April and 2 (Next Month)
Overhead applied April 30 446,897 Overhead applied April 30 (Next Month)
Total department costs $ 1,055,025 Total department costs (Next Month)
Job totals 9,326 hours $ 1,659,948 Job totals hours (Next Month)
Average cost per compact $ 11,216 Average cost per sedan (Next Month)

Case_1-7

Requirement 1
Requirement 2: Complete the outlined cells.
California Car Company
Planning Budget Versus Actual Costs
April 2016
Per Unit Planning Performance F or
(Planned) Budget Actual Variance U
Units Produced: (Same in each production dept.)
Sedans 481 492 11 F
Compacts 138 144 6 F
Sedan total direct labor hours 105 50,505 51,744 (1,239) U
Compact total direct labor hours 63 8,694 9,326 (632) U
Production Departments
Chassis Department:
Direct material cost
Sedan $ 1,282 616,642 630,540 (13,898) U
Compacts 790 109,020 116,920 (7,900) U
Direct labor cost
Sedans (50 hours) $ 1,900 913,900 937,916 (24,016) U
Compacts (27 hours) 1,026 141,588 152,076 (10,488) U
Total Chassis Department 1,781,150 $ 1,837,452 (56,302) U
Final Assembly Department:
Direct material cost
Sedan $ 1,848 888,888 909,172 (20,284) U
Compacts 2,742 378,396 405,816 (27,420) U
Direct labor cost
Sedans (50 hours) $ 2,090 1,005,290 1,028,356 (23,066) U
Compacts (36 hours) 1,368 188,784 202,312 (13,528) U
Total Final Assembly 2,461,358 $ 2,545,656 (84,298) U
Overhead Departments
Inspection Dept. (@$19 per DLH):
Sedans $ 1,995 959,595 (1)
Compacts 1,197 165,186
Totals 1,124,781 1,160,330 (35,549) U
Material Handling Dept. (@$10 per DLH):
Sedans $ 1,050 505,050 (1)
Compacts 630 86,940
Totals 591,990 610,700 (18,710) U
Setup Department (@$11 per DLH):
Sedans $ 1,155 555,555 (1)
Compacts 693 95,634
Totals 651,189 $ 671,770 (20,581) U
Maintenance Dept. (fixed): $ 1,146.00 709,374 551,327 158,047 F
General Factory Dept. (fixed): $ 4,665.00 2,887,635 2,168,269 719,366 F
Total overhead $ 5,964,969 $ 5,162,396 802,573 F
April total manufacturing costs 10,207,477 $ 9,545,504 661,973 F
(1) CCC does not record the amount of actual variable and fixed OH by model.
Total actual direct material costs from above 2,062,448
Total actual direct labor costs from above 2,320,660
Requirement 3
a. Write a short analysis discussing the overall cost control performance for the entire plant.
b. Write an analysis discussing the cost control performance for each manufacturing department.
Chassis Assembly:
Final Assembly:
Inspection and Rework::
Material Handling:
Setup:
Maintenance:
General Factory:
Requirement 4
Chassis Assembly:
Final Assembly:
Inspection and Rework:
Maintenance:
Requirement 5: For the impact on the variance below, enter "F" for Favorable, "U" for Unfavorable and "N" for No Effect.
Variance Impact Explanation of the Impact of Stockouts on the Variance
Direct material Enter F, U, or N Below
Direct labor Enter F, U, or N Below
Setup Enter F, U, or N Below
&L&T&C&D&R&F
See footnote at bottom of page.
See footnote at bottom of page.
See footnote at bottom of page.
Enter a formula so that a positive number is favorable and a negative is unfavorable.
You need to read the case to find this number.
You need to read the case to find this number.
This must be a formula
This must be a formula
Enter "F", "U", or "N" here.
Enter "F", "U", or "N" here.
Enter "F", "U", or "N" here.
Enter an Excel IF statement in this cell in the form: =IF(H20>0,"F","U")
Enter an Excel IF statement in this cell in the form: =IF(H20>0,"F","U")
Enter an Excel IF statement in this cell in the form: =IF(H20>0,"F","U")
Enter an Excel IF statement in this cell in the form: =IF(H20>0,"F","U")
Enter an Excel IF statement in this cell in the form: =IF(H20>0,"F","U")
Enter an Excel IF statement in this cell in the form: =IF(H20>0,"F","U")
Enter an Excel IF statement in this cell in the form: =IF(H20>0,"F","U")
Enter an Excel IF statement in this cell in the form: =IF(H20>0,"F","U")
Enter an Excel IF statement in this cell in the form: =IF(H20>0,"F","U")
Enter an Excel IF statement in this cell in the form: =IF(H20>0,"F","U")
Enter an Excel IF statement in this cell in the form: =IF(H20>0,"F","U")
Enter an Excel IF statement in this cell in the form: =IF(H20>0,"F","U")
Enter an Excel IF statement in this cell in the form: =IF(H20>0,"F","U")
Enter an Excel IF statement in this cell in the form: =IF(H20>0,"F","U")
Enter an Excel IF statement in this cell in the form: =IF(H20>0,"F","U")
Enter an Excel IF statement in this cell in the form: =IF(H20>0,"F","U")
Enter an Excel IF statement in this cell in the form: =IF(H20>0,"F","U")
Enter an Excel IF statement in this cell in the form: =IF(H20>0,"F","U")
Enter an Excel IF statement in this cell in the form: =IF(H20>0,"F","U")
Enter an Excel IF statement in this cell in the form: =IF(H20>0,"F","U")
Enter an Excel IF statement in this cell in the form: =IF(H20>0,"F","U")