Name Ibnatun Nusaiba

ID 2013056630
a)
Variable Costing System(Year 2):
Cost Per Unit
DM 32
DL 11.2
Variable MOH 3.75
Cost of prduction per unit 46.95

b)
Absorption Costing System:
DM 32
DL 11.2
Variable MOH 3.75
Fixed MOH 44.04761905 Total fixed Moh/Unit produce in year 2
90.99761905
C)
Contribution Margin(Variable Costing System):
Sales 789600
less:Cost os production:
Beginning inventory(4300-3900)*46.95 18780
(+)produce in this year 197190
(-)Ending inventory{(400+4200)-4200}*46.95 18780
Variable COGS 197190
Variable S&A expense(4200*9) 37800
Contribution Margin 554610
Fixed Expense:
Fixed MOH 185000
Fixed S&A expense 45000 230000
Net Operating Income 324610
a)
Filling order Machine Setup Customer Order Other Total
Administrative wage & salaries 117000 13000 104000 26000 260000
Marketing Department 36000 0 117000 27000 180000
Producting Department 0 170500 93000 46500 310000
153000 183500 314000 99500 750000
b)
Activity Cost Pool Total Cost Total Activity Avtivity Rate
Filling Orders 153000 1100 139.0909090909
Machine Setup 183500 25500 7.196078431373
Customer Support 314000 165 1903.03030303

c)
Activity Cost Pool Avtivity Rate Activity ABC Cost
Filling Orders 139.090909 70 9736.363636364
Machine Setup 7.19607843 1560 11225.88235294
Customer Support 1903.0303 8 15224.24242424
Total 36186.48841355
Administrative wage & salaries 260000
Marketing Department 180000
Producting Department 310000
a)
Material Variance
Price Variance: Quantity Variance:
Actual quantity 6700 Actual Quantity 6700
* Actual Price 7.05 *Standard Price 7
47235 46900
Actual Quantity 6700 Standard Quantiy 6300
*Standard Price 7 *Standard Price 7
46900 44100
Price Variance 335 Unfavorable 2800 Unfavorable
b)
Labour Variance:
Rate Variable: Quantity Variance:
Actual Hours 15582 Actual Hours 15582
*Actual Rate 11.64998 *Standard Rate 11.5
181530 179193
Actual Hours 15582 Standard Hours 14840
*Standard Rate 11.5 *Standard Rate 11.5
179193 170660
Rate Variable: 2337 Unfavorable 8533 Unfavorable
Sales Budget
January February March Quarter
Budgeted Sales in Units 38000 32000 32000 102000
*Selling Price per Unit 150 150 150 150
Total Budgeted Sales 5700000 4800000 4800000 15300000

Product Budget
January February March Quarter April
Budgeted Sales 38000 32000 32000 102000 35000
add:Desired ending inventory 8000 8000 8750 8750 10000
total need 46000 40000 40750 110750 45000
Less: Beginning Inventory 0 0 0 0 0
Required production 46000 40000 40750 110750 45000

Direct Material Budget

January February March Quarter
Production 46000 40000 40750 110750 45000
*Materals per Unit 3.5 3.5 3.5 3.5 3.5
Production need 161000 140000 142625 387625 157500
Add:Desired Ending Inventory 14000 14262.5 15750 15750
Total Need 175000 154262.5 158375 403375
Less:Beginning Inventory 0 0 0 0
Materials to be purchase 175000 154262.5 158375 403375

Expexted Cash Disbursement

January February March Quarter
Januarey Purchase: 43750 87500 43750 175000
February Purchase 38565.63 77131.25 115696.9
March Purchase 39593.75 39593.75
Total Cash Disbursement 43750 126065.6 160475 330290.6