a

7 MANA CHRP
TEVGHGREMONRAGM Cas a 4001 to mgmt planning)
Pinwme- one of the many important measures used fo evaluates he performance of both: segments,
and the wmpany as a whole
Cexternal epusng )
adnan al)

OD)wfactu r ° “ost
i

RIA GLE Cov' et) COS TIN G indude

MET kenalieyo
HOD)only(inWhose ring) CAGABSORPETIdheON pro STIN
COdud s
Gwi”MEcllTHmau Cdang
eost of the produc must Prodachon — ust s
cast that vary \ducc ad VolumeoF producton regardless wether murfcig wst it Voriaule or fired
Fixed Mantfadkyring overhead —> 4reated as period — two varies only 1a the dredtment of Fired factory
Cost¥ is enhrely charged against revenues for that overnedd
penud -
Cyst of Manufacturing =
- cost of Manufacturing =
J AS goods arc sold, inihally appled
/rathally applied tp
Finveptury =, |) becomes expense, Ww inventory | 7| SOI > becwmes
| Spegnuct (st as *coqs” Sogqgucr (usr |
|
changed imm,. 40 reumwues ss speRind Cust”
* PERI Cust”
Treats Anat fixed factory overhead must NOT: be:tnventaned)
ast daims under WOIst case of 7ERQ PRODUCTION
in @ given pertod would result 1 an savertory ws D OBSERVATIONS *% NEL ING
equal t0-F-oH ever wl Ovnrs on hand-
& 3 @~ sa ;
Raa Sees <7
St
rediged wegarks

E Sales
Conas) i's Pro d
> Sales > AC DNC |
Cv cas) 0805
(Vv sta Ge? : 7 : ti
(v-sea) Prd
< Sales > AG < VG \
4 Contrib Si.
F-S8A fi
CE- OH) _ ) D PROQUCION VOLUME ;,
CF- SA) Nt VARIANCE
————a
Nj appears whenever RETUAL prod- |
cleviutes fom BAPECTED prod. used
D REQNULIATION OF VC if ompuling F-OH under AC
XY AG
VC AC | Exped = Actval > NO Varlence |
[AC ~ VC{

NI per AC NI per VC acadtaal > valavombole)

3 eo cher]: > Ach wonas, of.
+e. F~OH Cocg) + OH (end) Per 6 isi @ a
F-OH (end) — F-OH Cheq) nis n

Aimee NI per AC *UNOERN POUR

: | EapedeaS MAVAl'> Favorable
, ‘ * usage of foulihes
: more than CXPeckd
6 FO
SovERAPPLTED”
 [rows move]
VOx AG will Stow same NI when there are NO BEG 8 END InVenkynes (Tue)
in profit bw. NO g Vo js dO ENTIRE
LY by) F-ot ( True)
i" INV Undw AL As alloys Nighy? than vo
im tems oF Amounts Ctrwe)
GAnP Ttquie that Re
Ni under Vo® te ave olw Ys the
be use for wsting
OF inventory for calenol pure (Tryp)
Jame when Exrectep = fittual%
Kegardless of sales CFalse,)
fon = SHS v

BON under VGA clusely hed honges vA voles Joel C True)

& in fre jal Mig cosk dw cho W Hw produc’ ( Toe) r
>
Performance ewolvahor pbased on mune eHuld be hUSt athieye by Vsing Vo Ce) |

. pen Unk |
. ® ovis prediced (0 1090 vw fib
“nib produced oxg0b Vat PYo Junit cd SH OL FG |
(t, 00 Fo P syp,ovd|ovk TG sie Puy OH TD
srld
S/p =Pivo Fd ¥ funit- ply Hurd 000 f-0K= 4
~ ade Pao, BD Es@n Kod) ovb
(tc) -
aye " BR

Sdles = 800,990 Lrxkx100> a) per Uatt MOG tot = OF OL+ OH vew

a} COGS (1,108, 322} Qe" jos G+ 243 s\Le
) GP - Keds HFG Wyo APU
SS
30007
Rex |
©) amount af EedoW Pay rete Sold 2 end
mo 0,020" fu,000 = 80
OO 2-6 For © Fo defererd fetvic pore ud
| xX Ak andl my = a, inv Tiked ‘tft _ _
(\ a Oe
if J x g +19 IQ iYQo0 > |

o) Ve (492, 0900) SMOTV A WE? , -o

HH +V-5¢
+V-9%
——— |
bcM —-ANR,a00 | a) per ontt Mg cost = OM+ OLt ’ 2 {el
mi — < svok + 2k? W 4G4+°2
: cost
waver 6 = (Om
a7
as
@. gp Pp fonit V- 08 Frodo funit
FrOH @20,000/ 20 = P1,s00 pu unit
© Units Produ 50 units
=F 1am
©
7
(maik J
Vesta Tyxslunit
.
|
|
9 04 — Bi F-Sers
23 | jon Weuril FE yo,ono
“s(24) {~@o1)) 2y untts |
1 0_ |
2020 2021 id
—— . (ony a
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Nes 194,000 <q, Hos i? ites

ates 2WUy9
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V \
000X 24 7 -
00 +1, 10 ens (130,000) < (409041500) x 24 7
MOGs we 090) < (G,000 ¥ 800) X 1G 7
a ayd”
GP )
0
t,9990)
ore (2,000) < 40,900 + CwsX iw 2 ap
apex (420 < do,d00 + (25X24) >
14,000 \ b) NE [Hi.000|
Ni
¥ &,000 < deferred
(io) ' >: > < UH beg inv s\
ou}
—~—~~[79Z0T Ss ~OWur
Cakes UG fygo
x us00 Fak y
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\ yar aice
yo
aye
(A8,a00) < (000F \48) X45 > - .
.
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oo
CM FF 000 |
aM #3 ,000 \ Yo 000 ¥ 30) 390
re DVL
¢ (70,8)< 40,000 + 30,000->
b) Ny 3/200]
i) NI [3,000]

150, 00 ynts o Kua) tty’ in Unis

tytoble) Cost 9 ee
© » sedan
>on Tha © SIP 7
vA | YRYV
wsoo00 nts =(F4. Wy oo 90,000
> DL hr 200 ‘(10,000
* ond
2V-Oh P-2 oF OW Tiso,o00] carde
‘10,008
——

70,00
—

velwit( 3) + F-S0m Fug, 004

eee

—saks —\40,0p —«‘& 9,000

ONS £G of sates
wd -000b-—— 10,00
0) stanlard ROSH =
Startacd CE) + Fed)
=\ryl adual Ping, ud Pred Ge, _
3 4+
ye

YR) 49,090 >L15D units x 4FOH) = 20,0005

itls X A FH) =(19,000)|
ty, 00 p< (Wu
No
(Tosa0
‘%
YRL
000 [$0,000 units = (7)
\) ¥- rate Pin

(
0) Vodvehon Volume Variance ( Fr Yet &@ Ye 2)

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