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  • Cost analysis manufacturing process

    Uploaded by

    Ali Tariq Butt
    19 views7 pages
    The document shows the expected, standard, and actual costs for producing three assemblies - frame, wheel, and final assembly. There were variances for all categories, with total variances of -$303,338 for frame, -$151,850 for wheel, and -$519,600 for final assembly. Overall, the total annual cost was $1,074,788 unfavorable to the expected budget due to quantity, price, and spending variances across all categories.

    Original Description:

    High Solution

    Original Title

    Mie High Cycles

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    The document shows the expected, standard, and actual costs for producing three assemblies - frame, wheel, and final assembly. There were variances for all categories, with total variances of -$303,338 for frame, -$151,850 for wheel, and -$519,600 for final assembly. Overall, the total annual cost was $1,074,788 unfavorable to the expected budget due to quantity, price, and spending variances across all categories.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    19 views7 pages

    Cost analysis manufacturing process

    Uploaded by

    Ali Tariq Butt
    The document shows the expected, standard, and actual costs for producing three assemblies - frame, wheel, and final assembly. There were variances for all categories, with total variances of -$303,338 for frame, -$151,850 for wheel, and -$519,600 for final assembly. Overall, the total annual cost was $1,074,788 unfavorable to the expected budget due to quantity, price, and spending variances across all categories.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 7

    Quantity based

    Frame Assembly
    Steel tubing
    Paint
    Labor
    Total Frame
    Wheel Assembly
    Parts

    Expected Cost
    10,000
    Material Used
    Unit Price
    3,300,000
    110,000
    30.00
    25,000
    1,250
    20.00
    1,500,000
    100,000
    15.00
    4,825,000

    1,200,000

    10,000

    120.00
    Rework parts

    Labor
    Total Wheel

    65,000
    1,265,000

    5,000

    13.00

    Final Assembly
    Parts

    3,500,000

    10,000

    350.00
    Rework parts

    Labor
    Total Assembly
    Overhead Costs
    Rent
    Office Staf
    Depreciation
    Other costs
    Total Overheads
    Overhead rate
    Total Annual

    105,000
    3,605,000

    7,500

    250,000
    100,000
    100,000
    750,000 2/3 of variable
    1,200,000
    120
    10,895,000

    14.00

    VC PER UNIT
    1,125,000.00
    112.50
    Overhead rate

    Actual Cost
    10,800
    Material Used
    Unit Price
    3,572,100
    113,400
    31.50
    28,188
    1,375
    20.50
    1,528,050
    100,200
    15.25
    5,128,338

    Total Variance
    (272,100)
    (3,188)
    (28,050)
    (303,338)

    1,317,600
    25,000
    74,250
    1,416,850

    10,800

    122.00

    (117,600)

    5,500

    13.50

    (9,250)

    3,963,600
    45,000
    116,000
    4,124,600

    10,800

    367.00

    8,000

    14.50

    250,000
    100,000
    100,000
    850,000
    1,300,000
    120
    11,969,788

    (151,850)

    (463,600)
    (11,000)
    (519,600)
    Spending Variance
    (100,000)
    (100,000)
    (1,074,788)

    Quantity Variance Price Variance


    (102,000.00)
    (170,100) Total Quantity Variance
    (2,500.00)
    (688)
    (497,000.00)
    (3,000.00)
    (25,050)
    Total Price Variance
    (407,788)
    (96,000.00)
    (6,500.00)

    (280,000.00)
    (7,000.00)

    (21,600) Total Variance


    (2,750)

    (183,600)
    (4,000)

    (904,788)

    Quantity based
    Frame Assembly
    Steel tubing
    Paint
    Labor
    Total Frame
    Standard Cost

    Wheel Assembly
    Parts

    Expected Cost
    10,000
    Material Used
    Unit Price
    3,300,000
    110,000
    30.00
    25,000
    1,250
    20.00
    1,500,000
    100,000
    15.00
    4,825,000

    1,200,000

    10,000

    120.00

    65,000
    1,265,000

    5,000

    13.00

    Final Assembly
    Parts

    3,500,000

    10,000

    350.00

    Labor
    Total Assembly

    105,000
    3,605,000

    7,500

    14.00

    Overhead Costs
    Rent
    Office Staf
    Depreciation
    Other costs
    Total Overheads
    Overhead rate
    Total Annual

    250,000
    100,000
    100,000
    750,000 2/3 of variable
    1,200,000
    120
    1,200,000

    Labor
    Total Wheel
    Standard Cost

    VC PER UNIT
    1,125,000.00
    112.50

    Actual Cost
    10,800
    Material Used
    3,572,100
    28,188
    1,528,050
    5,128,338

    Rework parts

    Rework parts

    Unit Price
    113,400
    31.50
    1,375
    20.50
    100,200
    15.25

    1,317,600
    25,000
    74,250
    1,416,850

    10,800

    122.00

    5,500

    13.50

    3,963,600
    45,000
    116,000
    4,124,600

    10,800

    367.00

    8,000

    14.50

    ###
    ###
    100,000
    850,000
    1,300,000
    Overhead should be Absorbed
    1,325,000 Fixed overhead variance
    Volume variance
    Spending variance
    Total Variance

    1,296,000
    4,000
    (96,000)
    (100,000)
    (196,000)

    Total
    Total Variance

    Total
    Total Variance

    Total
    Total Variance
    Spending Variance
    (100,000)
    (100,000)
    Not favourable
    Not favourable
    Not favourable

    Quantity Variance
    (102,000.00) Not favourable
    (2,500.00) Not favourable
    (3,000.00) Not favourable
    (107,500.00)

    Price Variance
    (170,100)
    (688)
    (25,050)
    (195,838)

    (303,337.50)
    Quantity Variance
    (96,000.00) Not favourable
    (25,000) Not favourable
    (6,500.00) Not favourable
    (127,500.00)

    Price Variance
    (21,600)
    (2,750)
    (24,350)

    (151,850.00)
    Quantity Variance
    (280,000.00) Not favourable
    (45,000.00) Not favourable
    (7,000.00) Not favourable
    (332,000.00)
    (519,600.00)

    Price Variance
    (183,600)
    (4,000)
    (187,600)

    Not favourable
    Not favourable
    Not favourable

    Not favourable
    Not favourable

    Not favourable
    Not favourable

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