Wilkerson Company - Operating results

Sales 2,152,500 $
Direct Labor Expense 271,250 $
Direct Materials Expense 458,000 $
Manufacturing overhead
Machine-related expenses 336,000 $
Setup Labor 40,000 $
Receiving and production control 180,000 $
Engineering 100,000 $
Packing and shipping 150,000 $
Total Manufacturing Overhead 806,000 $
Gross Margin 617,250 $
SG&A 599,650 $
Operating Income (pre-tax) 57,600 $

Product profitability analysis Valves

Direct labor cost 10 $
Direct material cost 16 $
Manufacturing ovearhead (@300) 30 $
Standard unit costs 56 $

Target selling price 86.15 $

Planned gross margin (%) 35%

Actual selling price 86 $

Actual gross margin (%) 34.9%

Product Data

Product line Valves

Materials per unit 4 components
2@2
2@6

Materials cost per unit

Direct labor per unit $/unit @ 25$/DL hour

Machine hours per unit

Monthly Production and Operating Statistics Valves

Production (units) 7500
Machine hours 3750
Production runs 10
Number of shipments 10
Hours of engineering work 250
 Machine-related expenses 336,000 $ 112,500 $
Setup Labor 40,000 $ 2,500 $
Receiving and production control 180,000 $ 11,250 $
Engineering 100,000 $ 20,000 $
Packing and shipping 150,000 $ 5,000 $
SG&A 599,650 $ 187,390.63
Total indirect costs per total units of products 1,405,650 $ 338,641 $
Indirect costs per product unit 45.15 $
Direct cost per product unit (from case) 56.00 $
Direct cost (Labor + Material) 26.00 $
Total direct + indirect cost 71.15 $
Sale price 86.00 $
14.85 $
Actual Gross Margin (%) 17%
 Valves Pumps Flow controllers
100% 7500 1250 4000 12750
75,000 $ 15,625.00 $ 40,000 $ 130625

29%

Pumps Flow controllers

13 $ 10 $
20 $ 22 $
38 $ 30 $
70 $ 62 $

107.69 $ 95.28 $
35% 35%

87 $ 105 $
19.5% 41.0%

Valves Pumps Flow controllers

4 components 5 comp 10 components
4 3@2 6 4@1 4
12 2@7 14 5@2 10
1@8 8
16 20 22
0.4 $ 0.5 $ 0.4 $
10.0 $ 12.5 $ 10.0 $
0.5 0.5 0.3

Valves Pumps Flow controllers Total

31% 12500 52% 4000 17% 24000
33% 6250 56% 1200 11% 11200
6% 50 31% 100 63% 160
3% 70 23% 220 73% 300
20% 375 30% 625 50% 1250
187,500 $ 36,000 $ 336,000 $
12,500 $ 25,000 $ 40,000 $
56,250 $ 112,500 $ 180,000 $
30,000 $ 50,000 $ 100,000 $
35,000 $ 110,000 $ 150,000 $
312,318 $ 99,942 $ 599,650 $
633,568 $ 433,442 $ 1,405,650 $
50.69 $ 108.36 $
70.00 $ 62.00 $
32.50 $ 32.00 $
83.19 $ 140.36 $
87.00 $ 105.00 $
3.81 $ - 35.36 $
4% -34%