【关键字】精品
Contents
1. Introduction ..................................阳光的味道
.........................................................2
2. 2
2.1 Part A ...................................................................................................2
2.1.1 The flexed budget in line with actual activity ....................................................2
2.1.2 Variance Analysis ...............................................................................................3
2.1.3 The Report for Management ..............................................................................4
2.2 Part B ...................................................................................................6
2.2.1 Payback Period ...................................................................................................6
2.2.2 Discounted Cash Flow .......................................................................................7
2.2.3 Recommendations to management .....................................................................9
3. 9
4. 1谁是森林之王
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1. Introduction
Matteck plc specialis in components for the telecoms industry. One of their products is the free-modem. This modem allows urs to surf the web using multiple rvers. And now, Matteck plc is now considering expa师带徒总结
nding into Asia. This operation would involve the acquisition of a factory, the purcha of veral new motor vehicles and a new distribution unit. This report would be divided into two part, part A and part B. The part A will prepare a flexed budget in line with actual activity and calculate some variances, such as materials, labor and overheads. Then, produce a report for management in which my identify and and discuss one possible reason for each for each of the above variances. The part B will produce a report for management in which I evaluate the financial viability of the Investment proposal.
2. Findings
2.1 Part A
2.1.1 The flexed budget in line with actual activity
Matteck plc Flexed Budget for December 2011 |
| Budgeted Figures | Flexed Budget | Actual Cost | Variance | Adver/ Favorable |
No of units | 5,000 | 4,500 | 4,500 | | |
|
|
|
|
| |
Direct Material | 180,000 | 162,000 | 160,000 | 2,000 | Favorable |
Direct Labor | 100,000 | 90,000 | 95,000 | (5,000) | Adver |
Overheads | | | | | |
Variable overheads | 50,000 | 45,000 | 47,500 | (2,500) | Adver |
Supervision | 3,300 | 3,300 | 3,400 | (100) | Adver |
Rent and rates | 1,000 | 1,000 | 1,200 | (200) | Adver |
Administration | | | | | |
Overheads | 2,000 | 2,000 | 2,100 | (100) | Adver |
Depreciation | 3,000 | 3,000 | 3,000 | 0 | |
| | | | | |
2.1.2 Variance Analysis
The Materials: total, usage and price:
A. Material Total Cost Variance = (budgeted Quantity * Budgeted Price) - (Actual
Quantity * Actual price)
= 162,000 - 160,000
= 2,000 (Favorable)
B. Direct Material Usage = Budgeted Price/kg * (Budgeted - Actual Quantity)
= 12 * (13,500 - 16,000)
= (30,000) (Adver)
C. Direct Material Price = Actual Quantity *(Budgeted Price - Actual Price)
= 16,000 * (12 - 10)
= 32,000 (Favorable)
Labor: total, efficiency and rate:
A. Direct Labor Total = (Budgeted hours * Budgeted Rate) - (Actual hours *Actual
Rate)
立隋
= 90,000 - 95,000
= (5,000) (Adver)
B. Direct Labor Rate = Actual Hours * (Budgeted Rate - Actual Rate)
= 10,000 * (8 - 9.5)
= (15,000) (Adver)
C. Direct Labor Efficiency = Budgeted Rate * (Budgeted hours - Actual Hours)
= 8 * (11,250 - 10,000)
= 10,000 (Favorable)
Overheads: total
Total Overhead = (Budgeted Variable Overhead + Budgeted Fixed Overhead) -
(Actual Variable Overhead + Actual Fixed Overhead)
= 54,300 - 57,300
= (2,900) (Adver)
2.1.3 The report for management
Material Total Cost Variance— 2,000, which is favorable including direct material usage and direct material price.
Direct Material Usage — 30,000, which is adver.
Becau the company uses 2,500 kg more material units, which is more than planned for
the actual level of production so that it is adver.
Possible reasons:
1. The completion of machine project could be postponed, and it could lead to speed more materials than original plans.
2. Lower quality materials may need more machining so that there are more expected waste in the process of machining.
Direct Material Price — 32,000, which is favorable.
