Scribd Logo
Upload

Welcome to Scribd!

  • 82 views

    Danshui Plant

    Uploaded by

    YAKSH DODIA
    1) The document presents the flexible and actual budgets for a company producing 2 lac units of phones. It shows the revenues, variable costs, fixed costs and net income. 2) The actual costs were higher than the flexible budget for some variable cost items like materials and labor. This led to a net loss of Rs. 672 compared to a net income of Rs. 100 in the flexible budget. 3) Key variances that contributed to higher costs include a materials variance of Rs. 389 for flash memory and a labor variance of Rs. 732.2 for assembly and packaging.

    Copyright:

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

    Danshui Plant

    Uploaded by

    YAKSH DODIA
    82 views2 pages
    1) The document presents the flexible and actual budgets for a company producing 2 lac units of phones. It shows the revenues, variable costs, fixed costs and net income. 2) The actual costs were higher than the flexible budget for some variable cost items like materials and labor. This led to a net loss of Rs. 672 compared to a net income of Rs. 100 in the flexible budget. 3) Key variances that contributed to higher costs include a materials variance of Rs. 389 for flash memory and a labor variance of Rs. 732.2 for assembly and packaging.

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    1) The document presents the flexible and actual budgets for a company producing 2 lac units of phones. It shows the revenues, variable costs, fixed costs and net income. 2) The actual costs were higher than the flexible budget for some variable cost items like materials and labor. This led to a net loss of Rs. 672 compared to a net income of Rs. 100 in the flexible budget. 3) Key variances that contributed to higher costs include a materials variance of Rs. 389 for flash memory and a labor variance of Rs. 732.2 for assembly and packaging.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    82 views2 pages

    Danshui Plant

    Uploaded by

    YAKSH DODIA
    1) The document presents the flexible and actual budgets for a company producing 2 lac units of phones. It shows the revenues, variable costs, fixed costs and net income. 2) The actual costs were higher than the flexible budget for some variable cost items like materials and labor. This led to a net loss of Rs. 672 compared to a net income of Rs. 100 in the flexible budget. 3) Key variances that contributed to higher costs include a materials variance of Rs. 389 for flash memory and a labor variance of Rs. 732.2 for assembly and packaging.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 2

    Flexible Actual

    Budget(1.8 lac Budgeted cost Cost per


    2 lac units 1.8 lac units units) Variance per unit unit
    Revenue 41240 37476 AQ*SP
    Variable Costs
    Materials
    Flash Memory 5400 5249 4860 -389 27 29.16
    Appplication process 2150 1935 1935 0 10.75 10.75
    Chips-Phone 2810 2529 2529 0 14.05 14.05
    Gyroscope 520 468 468 0 2.6 2.60
    8 other chips 14190 12643 12771 128 70.95 70.24
    Variable supplies & Tools 12507 11305 11256.3 -48.7 62.535 62.81
    Subtotal 37577 34129 33819.3 -309.7 187.885 189.61
    Labor
    Assembly and packaging 2622 3092 2359.8 -732.2 13.11 17.18
    Shipping 212 191 190.8 -0.2 1.06 1.06
    Total Variable Costs 40411 37412 36369.9 -1042.1 202.055 207.8444
    0 0
    Fixed Costs 0 0
    Factory rent 400 400 360 -40
    Machine depreciation 150 150 135 -15
    Utility fee and taxes 52 52 46.8 -5.2
    Supervision 127 134 114.3 -19.7
    T.F.C 729 736 656.1 -79.9 3.645 4.088889
    Total Costs 41140 38148 37026 -1122 205.7 211.9333
    Net Income 100 -672 90 762 0.5 -3.73333
    M.C.V=SQ*SP-AQ*AP 151 L.C.V

    S.P 27 S.R 13.11


    A.P 29.16111 A.R 17.18
    S.Q 200 S.Q 200
    A.Q 180 A.Q 180

    M.P.V=AQ*(S.P-A.P) -389 L.P.V -732.2


    M.Q.V=S.P*(SQ-AQ) 540 L.E.V 262.2

    M.C.V 151 L.C.V -470

    You might also like