Pet Care Company

1 Overhead Budget
For the Coming Year
activity level
55.000 hours
variable costs:
maintenance $ 0.40 $ 22,000
power $ 0.50 $ 27,500
indirect labor $ 1.60 $ 88,000
total variable costs $ 137,500
fixed costs:
maintenance $ 17,000
indirect labor $ 26,500
Rent $ 18,000
total variable costs $ 61,500
total overhead costs $ 199,000

Basic diet 0.25*100.000 25.000

spec diet 0.30*100.000 30.000
total DLH 55.000

2 Pet Care Company

Overhead Budget
For the Coming Year
activity level
60.500 hours
variable costs:
maintenance $ 0.40 $ 24,200
power $ 0.50 $ 30,250
indirect labor $ 1.60 $ 96,800
total variable costs $ 151,250
fixed costs:
maintenance $ 17,000
indirect labor $ 26,500
Rent $ 18,000
total variable costs $ 61,500
total overhead costs $ 212,750

if 10% higher
55.000*110% 60,500

Pet Care Company

Overhead Budget
For the Coming Year
 activity level
44000 hours
variable costs:
maintenance $ 0.40 $ 17,600
power $ 0.50 $ 22,000
indirect labor $ 1.60 $ 70,400
total variable costs $ 110,000
fixed costs:
maintenance $ 17,000
indirect labor $ 26,500
Rent $ 18,000
total variable costs $ 61,500
total overhead costs $ 171,500

if 20% lower
55.000*80% 44,000
1 Pet Care Company
Overhead Budget
For the Current Year
actual budget
units produced 220000 220000
production costs:
maintenance $ 40,500 $ 41,000
power $ 31,700 $ 30,000
indirect labor $ 119,000 $ 122,500
rent $ 18,000 $ 18,000
total cost $ 209,200 $ 211,500

flexible budget:
0.25*120.000 30,000
0.30*100.000 30,000
total DLH 60,000

maintenance 17000+0.40*60000 $ 41,000

power 0.50*60000 $ 30,000
indirect labor 26500+1.60*60000 $ 122,500
rent 18000+0 $ 18,000

2 variansi :
maintenance 1%
power -6%
indirect labor 3%
rent 0%

semua variansi bersifat tidak material karena masih dalam rentan 5-10% dari biaya yang dianggarkan.
 variance

500 F
-1700 U
3500 F
$ -
2300 F

biaya yang dianggarkan.

menggunakan high and low methode
maintenance:
V = (13100-10100)/(2000-1000) = $ 3.00
F = Y2 - VX2 = 13100-3*2000 = $ 7,100
maintenance cost = 7100 + 3X

supplies:
V = (4800-2400)/1000 = $ 2.40
F = 4800-2.40*2000 = $ -
supplies cost = 2.40X

power:
V = (2000-1000)/1000 = $ 1.00
F = 2000-1*2000 = $ -
power cost = 1X

other:
V = (14240-12940)/1000 = $ 1.30
F = 14240-1.30*2000 = $ 11,640
other cost = 11640 + 1.30X

DLH
1000 2000
maintenance $ 10,100.00 $ 13,100 7100+3(1800) $ 12,500
depreciation $ 7,000 $ 7,000 $ 7,000
supervision $ 16,000.00 $ 16,000 $ 16,000
supplies $ 2,400.00 $ 4,800 2.40(1800) $ 4,320
power $ 1,000.00 $ 2,000 1(1800) $ 1,800
other $ 12,940 $ 14,240 11640+1.30(1800) $ 13,980
total $ 49,440 $ 57,140 $ 55,600
a Optima Company
sales budget
for the year ending december 31 2008
1 2
unit 65000 70000
unit price $ 400 $ 400
total sales $ 26,000,000 $ 28,000,000

b Optima Company
production budget
for the year ending december 31 2008
1 2
sales 65,000 70,000
desired ending
inventory 13,000 15,000
total needs 78,000 85,000
(-) beginning invetory - 13,000
production 78,000 72,000

c Optima Company
direct materials purchases budget
for the year ending december 31 2008
1 2
production 78,000 72,000
materials/unit 3 3
production needs 234,000 216,000
desired ending inventory 63,000 67,500
total needs 297,000 283,500
(-) beginning inventory 65,700 63,000
purchases 231,300 220,500
cost per unit $ 80 $ 80
purchase cost $ 18,504,000 $ 17,640,000

d Optima Company
direct labor budget
for the year ending december 31 2008
1 2
production 78,000 72,000
hours per unit 5 5
hours needed 390,000 360,000
cost per hour $ 10 $ 10
total cost $ 3,900,000 $ 3,600,000
e Optima Company
overhead budget
for the year ending december 31 2008
1 2
budgeted hours 390,000 360,000
variable rate $ 6 $ 6
budgeted VOH $ 2,340,000 $ 2,160,000
budgeted FOH $ 1,000,000 $ 1,000,000
total OH $ 3,340,000 $ 3,160,000

f Optima Company
selling and administrative expense budget
for the year ending december 31 2008
1 2
planned sales 65000 70000
variable rate $ 10 $ 10
variable expenses $ 650,000 $ 700,000
fixed expenses $ 250,000 $ 250,000
total expenses $ 900,000 $ 950,000

g Optima Company
ending finished goods inventory budget
for the year ending december 31 2008

unit cost computation

direct materials (3 unit*80)
direct labor (5 hours*10)
overhead:
variable (5 hours*6)
fixed (4000000/310000)
total unit cost

finished goods

h Optima Company
cost of goods sold budget
for the year ending december 31 2008
direct materials
direct labor used
overhead
budgeted manufacturing costs
(+)beginning finished good inventory
 goods available for sale
(-) ending finished inventory
budgeted cost of goods sold

i Optima Company
cash budget
for the year ending december 31 2008
1 2
beginning cash balance $ 250,000 $ 1,110,000
collections:
credit sales:
current quarter $ 22,100,000 $ 23,800,000
prior quarter $ 3,300,000 $ 3,900,000
cash available $ 25,650,000 $ 28,810,000
(-)disbursments:
direct materials:
current quarter $ 9,252,000 $ 8,820,000
prior quarter $ 7,248,000 $ 9,252,000
direct labor $ 3,900,000 $ 3,600,000
overhead $ 2,990,000 $ 2,810,000
selling and admin $ 850,000 $ 900,000
dividens $ 300,000 $ 300,000
equipment
total cash needs $ 24,540,000 $ 25,682,000
ending cash balance $ 1,110,000 $ 3,128,000

j Optima Company
pro forma income statement
for the year ending december 31 2008
sales
(-) cost of goods sold
gross margin
selling and administrative expenses
(-) income before income taxes

k Optima Company
pro forma balance sheet
december 31 2008
assets
cash
accounts receivable
direct materials inventory
finished goods invetory
plant and equipment
total assets

liability and stockholders equity

accounts payable
capital stock
retained earnings
total liabilities and stockholders equity
Company
budget
g december 31 2008
3 4 year
75000 90000 300000
$ 400 $ 400 $ 400
$ 30,000,000 $ 36,000,000 $ 120,000,000

Company
ion budget
g december 31 2008
3 4 year
75,000 90,000 300,000

20,000 10,000 10,000

95,000 100,000 310,000
15,000 20,000 -
80,000 80,000 310,000

Company
purchases budget
g december 31 2008
3 4 year
80,000 80,000 310,000
3 3 3
240,000 240,000 930,000
81,000 65,700 65,700
321,000 305,700 995,700
67,500 81,000 65,700
253,500 224,700 930,000
$ 80 $ 80 $ 80
$ 20,280,000 $ 17,976,000 $ 74,400,000

Company
bor budget
g december 31 2008
3 4 year
80,000 80,000 310,000
5 5 5
400,000 400,000 1,550,000
$ 10 $ 10 $ 10
$ 4,000,000 $ 4,000,000 $ 15,500,000
 Company
ad budget
g december 31 2008
3 4 year
400,000 400,000 1,550,000
$ 6 $ 6 $ 6
$ 2,400,000 $ 2,400,000 $ 9,300,000
$ 1,000,000 $ 1,000,000 $ 4,000,000
$ 3,400,000 $ 3,400,000 $ 13,300,000

Company
rative expense budget
g december 31 2008
3 4 year
75000 90000 300000
$ 10 $ 10 $ 10
$ 750,000 $ 900,000 $ 3,000,000
$ 250,000 $ 250,000 $ 1,000,000
$ 1,000,000 $ 1,150,000 $ 4,000,000

$ 240
$ 50

$ 30
$ 12.90
$ 332.90

$ 3,329,032

$ 74,400,000
$ 15,500,000
$ 13,300,000
$ 103,200,000
$ -
 $ 103,200,000
$ 3,329,032
$ 99,870,968

Company
budget
g december 31 2008
3 4 year
$ 3,128,000 $ 5,568,000 $ 250,000

$ 25,500,000 $ 30,600,000 $ 102,000,000

$ 4,200,000 $ 4,500,000 $ 15,900,000
$ 32,828,000 $ 40,668,000 $ 118,150,000

$ 10,140,000 $ 8,988,000 $ 37,200,000

$ 8,820,000 $ 10,140,000 $ 35,460,000
$ 4,000,000 $ 4,000,000 $ 15,500,000
$ 3,050,000 $ 3,050,000 $ 11,900,000
$ 950,000 $ 1,100,000 $ 3,800,000
$ 300,000 $ 300,000 $ 1,200,000
$ 2,000,000 $ 2,000,000
$ 27,260,000 $ 29,578,000 $ 107,060,000
$ 5,568,000 $ 11,090,000 $ 11,090,000

$ 120,000,000
$ 99,870,968
$ 20,129,032
$ 4,000,000
$ 16,129,032

$ 11,090,000
$ 5,400,000
$ 5,256,000
$ 3,329,000
$ 33,900,000
$ 58,975,000

$ 8,988,000
$ 27,000,000
$ 22,987,000
$ 58,975,000
1 fixed overhead rate = 107500/25000 =
perbedaannya :
fixed overhead rate(production-sale)
4.30(25000-23000) = $ 8,600

2 Lexter.Inc
Variable Costing Income Statement
For the year Ended December 31 2008
sales (23000*26) $ 598,000
less variable expenses:
cost of goods sold (23000*12.80) $ 294,400
selling (23000*4) $ 92,000 $ 386,400
contribution margin $ 211,600
less fixed margin:
overhead $ 107,500
selling and adminsitrative $ 26,800 $ 134,300
operating income $ 77,300

Lexter.Inc
Absorption Costing Income Statement
For the year Ended December 31 2008
Sales $ 598,000
less: Cost of goods sold (23000*17.10) $ 393,300
gross margin $ 204,700
less: selling administrative expenses $ 118,800
operating income $ 85,900
$ 4.30
1 ziemble company
Absorption Costing Income Statement
sales $ 1,512,000
cost of goods sold $ 1,048,000
gross margin $ 464,000
selling and administrative expenses $ 444,000
net income $ 20,000

fixed overhead rate = 300000/75000 = $ 4 per unit

applied fixed overhead = 4*74000 $ 296,000
underapplied fixed overhead = 300000-296000 = $ 4,000
cost of goods sold = (4*72000)+4000+756000 $ 1,048,000

2 I^A - I^V = fixed overhead rate (production - sales)

20000 - 12000 =4(74000-72000)
$ 8,000.00 $ 8,000.00
uction - sales)