Needing a paper for cost accounting class.
achxrube3
acc_207_final_project-.xlsxPart I - Product vs Period Cost
| Milestone One, Part I | |
| Product Costs | |
| Materials- Cedar | |
| Materials- Plastic | |
| Factory Worker Labor | |
| Materials- Indirect | |
| Factory Depreciation | |
| Factory Utilities | |
| Factory Maintenance and Repairs | |
| Period Costs | |
| Shipping | |
| Sales Commissions | |
| Office Rent | |
| Advertising | |
| Liability Insurance | |
| Office Depreciation | |
| Office Salaries |
Part I - Costs
| Milestone One, Part II | |||||||||||||
| Use Table I on the MDE Manufacturing Budget to complete your calculations. | |||||||||||||
| Totals | Totals | ||||||||||||
| Budget | Actual | ||||||||||||
| Sales Price per Unit | $ 21 | 21.10 | |||||||||||
| Variable Costs | |||||||||||||
| Materials - Cedar | 4.50 | 5.28 | |||||||||||
| Materials - Plastic | 0.75 | 0.80 | |||||||||||
| Factory Worker Labor | 6.00 | 7.08 | |||||||||||
| Materials - Indirect | 0.06 | 0.06 | |||||||||||
| Shipping ($2.25/ea) | 2.25 | 2.25 | |||||||||||
| Sales Commissions ($2/unit sold) | 2.00 | 2.00 | |||||||||||
| Variable Cost per Unit | 15.56 | 17.47 | |||||||||||
| Contribution Margin | 5.44 | 3.63 | |||||||||||
| Fixed Costs | |||||||||||||
| Factory Depreciation | 78,000 | 78,000 | |||||||||||
| Factory Utilities | 12,000 | 12,000 | |||||||||||
| Factory Maintenance and Repairs | 5,000 | 4,500 | |||||||||||
| Office Rent | 12,000 | 12,000 | |||||||||||
| Advertising | 20,000 | 20,000 | |||||||||||
| Liability Insurance | 5,000 | 5,000 | |||||||||||
| Office Depreciation | 1,000 | 1,000 | |||||||||||
| Office Salaries | 48,000 | 48,000 | |||||||||||
| Total Fixed Costs | 181000 | 180500 | |||||||||||
| Using Budgeted Amounts | |||||||||||||
| Breakeven Point - | Fixed Cost | 181,000 | Breakeven Point - | 33,272 | |||||||||
| Contribution Per Unit | 5.44 | ||||||||||||
| Using Actual Amounts | Fixed Cost + Desired Profit | 190,500 | Units at Current Sales Price | 49697 | |||||||||
| + 10,000 profit | Contribution Per Unit | 3.63 | |||||||||||
| Using actual amounts | New Contribution Margin | 4.05 | |||||||||||
| + 10,000 profit | Current Variable Costs | 17.47 | |||||||||||
| New Sales Price | 21.52 |
Part II - Budget Model
| Milestone Two, Part I | |||||||||
| Use Tables I through IV on the MDE Manufacturing Budget to complete your calculations. | |||||||||
| Refer to Exhibit 7-2 on page 253 of the text | |||||||||
| Budget Model | From Flexible Budget Calculations Sheet | ||||||||
| Actual | Flexible Budget Variance | Favorable/ Unfavorable | Flexible Budget | Sales Volume Variance | Favorable/ Unfavorable | Static Budget | |||
| Units Sold | 47,000 | 47,000 | 47,000 | 50,000 | |||||
| Revenues | 991700 | $4,700 | Favorable | 987000 | ($63,000) | Unfavorable | 1050000 | ||
| Variable Costs | |||||||||
| DM-Plastic | 37,741 | -2,491 | Unfavorable | 35250 | 2,250 | Favorable | 37,500 | ||
| DM-Cedar | 248160 | -36,660 | Unfavorable | 211500 | 13,500 | Favorable | 225000 | ||
| Direct Manuf. Labor | 332760 | -50,760 | Unfavorable | 282000 | 18,000 | Favorable | 300000 | ||
| Variable Manuf. Overhead | 2,585 | 235 | Favorable | 2820 | 180 | Favorable | 3,000 | ||
| Total Variable Costs | 621246 | -89,676 | Unfavorable | 531570 | 33,930 | Favorable | 565500 | ||
| Fixed Manuf. Overhead | 94,500 | 500 | Favorable | 95000 | 0 | 95000 | |||
| Total Costs | 715746 | -89,176 | Unfavorable | 626570 | 33,930 | Favorable | 660500 | ||
| Gross Margin | 275954 | 84,476 | Unfavorable | 360430 | -29,070 | Unfavorable | 389500 |
Part II - Variance Analysis
| Milestone Two, Part II | |||||||
| Use the variance supporting calculation tab to complete your calculations. | |||||||
| Price Variance | Efficiency Variance | ||||||
| Direct Materials - Cedar | -22560 | -14100 | |||||
| Direct Materials - Plastic | 1034 | -3525 | |||||
| Direct Labor | |||||||
| Spending Variance | Efficiency Variance | ||||||
| Variable Manufacturing Overhead | -705 | 940 |
Flexible Budget Calculations
| Budgeted Unit | Actual Volume | Flexible Budget | |||
| Amounts | Amount | ||||
| Revenues | $ 21.00 | 47,000 | $987,000 | ||
| Variable Costs | |||||
| DM-Plastic | 0.75 | 47,000 | 35250 | ||
| DM-Cedar | 4.50 | 47,000 | 211500 | ||
| Direct Manuf. Labor | 6.00 | 47,000 | 282000 | ||
| Variable Manuf. Overhead | 0.06 | 47,000 | 2820 | ||
| Total Variable Manufacturing Costs | 531570 | ||||
| Fixed Manufacturing Overhead | 95,000 | ||||
| Total Manufacturing Costs | 626570 | ||||
| Gross Margin | 360430 | ||||
Variance Supporting Calculation
| Use Tables III and IV on the MDE Manufacturing Budget to complete your calculations. | ||||||||||
| Development of Price and Efficiency Variances - Calculations | ||||||||||
| Actual Ounces per Unit | Actual Units | Actual Ounces Used | Actual Cost | Actual Cost per Unit | ||||||
| DM-Plastic | 1.1 | 47,000 | 51,700 | 37,741 | $ 0.73 | |||||
| DM-Cedar | 3.2 | 47,000 | 150400 | 248160 | $ 1.65 | |||||
| Actual Labor Cost per Hour | Actual Labor Costs | Actual Labor Hours | Actual Units | Actual Labor Hours per Unit | ||||||
| Direct Manuf. Labor | $ 11.80 | 332760 | 28,200 | 47,000 | 0.60 | |||||
| Actual Costs Incurred (Actual Input Qty. × Actual Price) | Actual Input Qty. × Budgeted Price | Flexible Budget (Budgeted Input Qty. Allowed for Actual Output × Budgeted Price) | ||||||||
| Actual Units | Actual Feet per Unit | Actual Price per Ounce | Actual Units | Actual Feet per Unit | Budgeted Cost per Ounce | Actual Units | Budgeted Feet per Unit | Budgeted Cost per Ounce | ||
| Direct Material Plastic | 47,000 | 1.1 | $ 0.73 | 47,000 | 1.1 | $ 0.75 | 47,000 | 1 | $ 0.75 | |
| $ 37,741 | $ 38,775 | $ 35,250 | ||||||||
| $ 1,034 | $ (3,525) | |||||||||
| Price Variance | Efficiency Variance | |||||||||
| Direct Material Cedar | 47,000 | 3.2 | $ 1.65 | 47,000 | 3.2 | $ 1.50 | 47,000 | 3.0 | $ 1.50 | |
| $ 248,160 | $ 225,600 | $ 211,500 | ||||||||
| $ (22,560) | $ (14,100) | |||||||||
| Price Variance | Efficiency Variance | |||||||||
| Actual Units | Actual Hours per Unit | Actual Cost per Hour | Actual Units | Actual Hours per Unit | Budgeted Cost per Hour | Actual Units | Budgeted Hours per Unit | Budgeted Cost per Hour | ||
| Direct Manufacturing Labor | 47,000 | $ 0.60 | $ 11.80 | 47,000 | $ 0.60 | $ 12.00 | 47,000 | 0.5 | $ 12.00 | |
| $ 332,760 | $ 338,400 | $ 282,000 | ||||||||
| $ 5,640 | $ (56,400) | |||||||||
| Price Variance | Efficiency Variance | |||||||||
| Actual Costs | Actual Input Qty. × Budgeted Price | Flexible Budget (Budgeted Input Qty. Allowed for Actual Output × Budgeted Price) | ||||||||
| Actual Costs | Actual Units | Actual Feet per Unit | Budgeted Cost per Foot | Actual Units | Budgeted Feet per Unit | Budgeted Cost per Foot | ||||
| Variable manufacturing overhead | $ 2,585.0 | 47,000 | 0.2 | $ 0.20 | 47,000 | 0.3 | $ 0.20 | |||
| $ 2,585.00 | $ 1,880 | $ 2,820 | ||||||||
| $ (705) | $ 940 | |||||||||
| Spending Variance | Efficiency Variance | |||||||||
