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  • Danshui Plant No. 2 Exhibits

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    devilsharma
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    The document contains 3 exhibits summarizing costs and revenues for iPhone 4 production at Danshui Plant No. 2: 1. Exhibit 1 lists the standard variable costs for components in the iPhone 4, totaling $187.89. 2. Exhibit 2 shows the budgeted monthly fixed overhead costs total $729,000, including factory rent, machine depreciation, utilities and supervision costs. 3. Exhibit 3 presents preliminary August 2010 results, showing actual revenue was lower than budgeted while total costs were lower than budgeted, resulting in a net loss of $672 compared to a budgeted profit of $100. Variable costs were $2,999 lower than budgeted.

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    The document contains 3 exhibits summarizing costs and revenues for iPhone 4 production at Danshui Plant No. 2: 1. Exhibit 1 lists the standard variable costs for components in the iPhone 4, totaling $187.89. 2. Exhibit 2 shows the budgeted monthly fixed overhead costs total $729,000, including factory rent, machine depreciation, utilities and supervision costs. 3. Exhibit 3 presents preliminary August 2010 results, showing actual revenue was lower than budgeted while total costs were lower than budgeted, resulting in a net loss of $672 compared to a budgeted profit of $100. Variable costs were $2,999 lower than budgeted.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    61 views5 pages

    Danshui Plant No. 2 Exhibits

    Uploaded by

    devilsharma
    The document contains 3 exhibits summarizing costs and revenues for iPhone 4 production at Danshui Plant No. 2: 1. Exhibit 1 lists the standard variable costs for components in the iPhone 4, totaling $187.89. 2. Exhibit 2 shows the budgeted monthly fixed overhead costs total $729,000, including factory rent, machine depreciation, utilities and supervision costs. 3. Exhibit 3 presents preliminary August 2010 results, showing actual revenue was lower than budgeted while total costs were lower than budgeted, resulting in a net loss of $672 compared to a budgeted profit of $100. Variable costs were $2,999 lower than budgeted.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 5

    Danshui Plant No.

    2
    Exhibit 1

    Standard Variable Costs for iPhone 4


    Purchased chips:
    Flash memory (Samsung) $ 27.00
    Application processor (Samsung) 10.75
    Chip for phone calls (Infinion) 14.05
    Gyroscope (STMicrotechnologies) 2.60
    8 other purchased chips 70.95
    Subtotal purchased chips 125.35
    Variable supplies and tools 62.54
    187.89
    Labor:
    Assembly and packaging 13.11
    Shipping 1.06
    Danshui Plant No. 2
    Exhibit 2

    Budgeted Fixed Overhead per Month


    Factory rent $ 400,000
    Machine depreciation 150,000
    Utility fee and local taxes 52,000
    Supervision 127,000
    Monthly fixed costs $ 729,000
    Danshui Plant No. 2
    Exhibit 3

    August 2010 Preliminary Report on the Results of Operations


    Monthly budget Actual Variance
    (200,000 units) (180,000 units) (20,000 units)
    Revenue $ 41,240 $ 37,476 $ 3,764 U
    Variable costs
    Materials
    Flash memory 5,400 5,249 151 F
    Application processor 2,150 1,935 215 F
    Chips - phone 2,810 2,529 281 F
    Gyroscope 520 468 52 F
    8 other chips 14,190 12,643 1,547 F
    Variable supplies and tools 12,507 11,305 1,202 F
    Subtotal 37,577 34,129 3,448 F

    Labor
    Assembly and packaging 2,622 3,092 470 U
    Shipping 212 191 21 F
    Total variable costs 40,411 37,412 2,999 F

    Fixed costs:
    Factory rent 400 400 -
    Machine depreciation 150 150 -
    Utility fee and taxes 52 52 -
    Supervision 127 134 7 U
    Total fixed costs 729 736 7 U
    Total costs 41,140 38,148 2,992 F

    Net income $ 100 $ (672) $ 772 U


    August 2010 Preliminary Report on the Results of Operations
    Actual
    Static (200,000 units) Per unit (180,000 units)
    200000 180000
    Revenue $ 41,240 $ 37,476
    Variable costs
    Materials
    Flash memory 5,400 0.027 5,249
    Application processor 2,150 0.01075 1,935
    Chips - phone 2,810 0.01405 2,529
    Gyroscope 520 0.0026 468
    8 other chips 14,190 0.07095 12,643
    Variable supplies and tools 12,507 0.062535 11,305
    Subtotal 37,577 34,129

    Labor
    Assembly and packaging 2,622 3,092
    Shipping 212 191
    Total variable costs 40,411 37,412

    Fixed costs:
    Factory rent 400 400
    Machine depreciation 150 150
    Utility fee and taxes 52 52
    Supervision 127 134
    Total fixed costs 729 736
    Total costs 41,140 38,148

    Net income $ 100 $ (672)


    s
    Variance
    (20,000 units)
    20000 1000
    $ 3,764 U

    151 F 5,400 200000 0.03


    215 F 2,150 200000 0.01
    281 F 2,810 200000 0.01
    52 F 520 200000 0.00
    1,547 F 14,190 200000 0.07
    1,202 F 12,507 200000 0.06
    3,448 F

    470 U 2,622 200000 0.01


    21 F
    2,999 F

    -
    -
    -
    7 U
    7 U
    2,992 F

    $ 772 U

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