Overall Production

Manufacturing overheads Cost/month

Power 960,000
rent and rates 612,000
Insurance machinary 388,200
Depreciation on Machinery 815,550
lighting 255,000
Transportation,Shipment & Distribution 614,000
Plant head salaries 1,124,997
staff salaries (white collared staff) 265,002
Total 5,034,749

Foot balls
Manufacturing overheads Cost/month
Power 300,000
rent and rates 240,000
Insurance machinary 147,000
Depreciation on Machinery 294,000
lighting 75,000
Plant head salaries (1) (15lpa) 375,000
Transpotation, Shipments & Distribution 234,000
staff salaries (3 white collared staff) 75,000
Total 1,740,000

Direct cost of footballs Cost/day

Direct Material cost
Rubber bladders 5140
Synthetic lather (Polyurethane) 3120
Polycotton 4200
Special Stitches 5320
Nylon waxed cord 2980
Total Cost 20760

Direct Labour cost 10800

Shoes
Manufacturing overheads Cost/month
Power 280,000
rent and rates 80,000
Insurance machinary 108,600
Depreciation on Machinery 217,200
lighting 80,000
Plant head salaries (1) (15lpa) 333,332
Transpotation, Shipments & Distribution 60,000
staff salaries (2 white collared staff) 66,668
Total 1,225,800

Direct cost of shoes Cost/day

Direct Material cost
Fabric 11600
Thread 1540
sole 7060
Stitching needls 5800

Total Cost 26000

Direct Labour cost 10560

Jersey
Manufacturing overheads Cost/month
Power 240,000
rent and rates 192,000
Insurance machinary 78,300
Depreciation on Machinery 195,750
lighting 60,000
Plant head salaries (1) (15lpa) 249,999
Transpotation, Shipments & Distribution 270,000
staff salaries (4 white collared staff) 90,000
Total 1,376,049

Direct cost of shoes Cost/day

Direct Material cost
Rice knit fabric 8300
Thread 770
Printing Slate 4900
Elastane 3330
Stitching needls 2520
Total Cost 19820

Direct Labour cost 12480

Goalkeeping gloves
Manufacturing overheads Cost/month
Power 140,000
rent and rates 100,000
Insurance machinary 54,300
Depreciation on Machinery 108,600
lighting 40,000
Plant head salaries (1) (15lpa) 166,666
Transpotation, Shipments & Distribution 50,000
staff salaries (2 white collared staff) 33,334
Total 692,900

Direct cost of shoes Cost/day

Direct Material cost
lather 2550
latex 1750
Polyurethane 2150
Stitching needls 2300

Total Cost 8750

Direct Labour cost 5280

Football : Trainer Football

Direct Material Costs //Estimation done on the basis of per unit of Foot ball produ

Raw material Qty

Rubber bladders 1
Synthetic lather (Polyurethane) 1
Polycotton 1
Special Stitches 1
Nylon waxed cord 1
Total Direct Raw material cost per unit

Direct Labor costs

Process Station
Lamination Process 1
Cutting panels (hexagons and Pentagons) 2
Printing Process 3
Handstitching soccerball 4

Total

Wage rate @ 50/hr

Total Direct labor (manpower) 9

Wage rate/hr 50
Total working hrs/day 8
Total Direct labor costs/day 3,600
Total number of units produced/day 100
Direct labor costs per unit 36

Manufacturing Over heads

Manufacturing overheads Cost/month

Power 100,000
rent and rates 80,000
Insurance machinary 49,000
Depreciation on Machinery 98,000
lighting 25,000
Plant head salaries (1) (15lpa) 125,000
Transpotation, Shipment & Distribution 78,000
staff salaries (3 white collared staff) 25,000
Total 580,000

Departments Metric
Cost base
Plant head wokring hrs
Staff Salaries (white collar): 3 across Operating
and support department wokring hrs
No of machies Units
Cost of m/c's Rs
Horse power of m/c HP
Floor space %
Number of light points Units
Transpotation, Shipment & Distribution Units
Production hours worked total hrs/per day

Cost Head Amt/day

Power 3,846
rent and rates 3,077
Insurance machinary 1,885
Depreciation on Machinery 3,769
lighting 962
Transpotation, Shipment & Distribution 3,000
Shop head salaries (35lpa) 4,808
staff salaries (3*10lpa) 962
Total 22,308

//Allocation of service departments to production departments

Service department Operating departments
Production
Maintenance 0.70
HR and Admin 0.75
Finance 0.60
RnD and Product Mgmt 0.60

//Cost absorption

Production
Total Overheads 9,940
Maintenance 1,695
HR and Admin 530
Finance 684
RnD and Product Mgmt 840
Total costs 13,689
Hours 96
costs/hr 143
hourly distribution 6.4
overheads absorbed 913
Direct material
Direct labour
Total production cost per unit of football

Margin @30% 349

Sales price 1,511

mation done on the basis of per unit of Foot ball produced

Rate Total cost

25 25
12 12
18 18
22 22
13 13
90

Operating departments Manpower

Production Logistics Quality
2
1
1
1
1
2 1

6 2 1

Total sales every year 31,200

Cost/day
3,846
3,077
1,885
3,769
962
4,808
3,000
 962
22,308

Operating departments Support depar

Production Logistics Quality Maintenance

6 0.5 0.75 0.75

4.0 0.5 0.5 2

6 4 4 2
1,000,000 300,000 300,000 250,000
60 8 10 30
60 15 5 5
10 4 4 2
- 3,000 - -
96 64 64 -

Operating departments
Allocation Base Production Logistics Quality
Horsepower of m/c 2,060.44 274.73 343.41
Floor space 1,846.15 461.54 153.85
Cost of m/c 769.23 230.77 230.77
Cost of m/c 1,538.46 461.54 461.54
No of lights 360.58 120.19 240.38
Number of units - 3,000.00 -
Hour worked 2,884.62 240.38 360.58
hours worked 480.77 60.10 60.10
9,940 4,849 1,851

Operating departments
Logistics Quality
0.10 0.20
0.20 0.05
0.20 0.20
0.10 0.30

Logistics Quality
4,849 1,851
242 484 2,422
141 35 707
228 228 1,139
140 420 1,399
5,601 3,018
64 64
88 47
1.2 0.4
105 19 1,036
90
36
1,162
Support department
HR and Admin Finance RnD and Product Mgmt

0.50 1.00 0.5

0.25 0.5 0.25

1 - 4
100,000 200,000 300,000
2 - 2
3 3 10
2 2 2
- - -
- - -

Support department
Maintenance HR and Admin Finance RnD and Product Mgmt Total
1,030.22 68.68 - 68.68 3,846
153.85 76.92 76.92 307.69 3,077
192.31 76.92 153.85 230.77 1,885
384.62 153.85 307.69 461.54 3,769
60.10 60.10 60.10 60.10 962
- - - - -
360.58 240.38 480.77 240.38 4,808
240.38 30.05 60.10 30.05 962
2,422 707 1,139 1,399 19,308
 Allocation ratio matrix
Production Logistics Quality
power 60 8 10
rent 60 15 5
insurance 20,000.00 6,000.00 6,000.00
dep 40,000.00 12,000.00 12,000.00
lighting 12 4 8
Transpotation, Shipment & Distribution - 100 -
shop head salaries 6 0.5 0.75
staff salaries 4.0 0.5 0.5
Allocation ratio matrix
Maintenance HR and Admin Finance RnD and Product Mgmt Total
30 2 - 2 112
5 3 3 10 100
5,000.00 2,000.00 4,000.00 6,000.00 49,000
10,000.00 4,000.00 8,000.00 12,000.00 98,000
2 2 2 2 32
- - - - 100
0.75 0.50 1.00 0.5 10
2 0.25 0.5 0.25 8
Football : Champion Football

Direct Material Costs //Estimation done on the basis of per unit of Foot ball produ

Raw material Qty

Rubber bladders 1
Synthetic lather (Polyurethane) 1
Polycotton 1
Special Stitches 1
Nylon waxed cord 1
Total Direct Raw material cost per unit

Direct Labor costs

Process Station
Lamination Process 1
Cutting panels (hexagons and Pentagons) 2
Printing Process 3
Handstitching soccerball 4

Total

Wage rate @ 50/hr

Total Direct labor (manpower) 9

Wage rate/hr 50
Total working hrs/day 8
Total Direct labor costs/day 3,600
Total number of units produced/day 48
Direct labor costs per unit 75

Manufacturing Over heads

Manufacturing overheads Cost/month

Power 100,000
rent and rates 80,000
Insurance machinary 49,000
Depreciation on Machinery 98,000
lighting 25,000
Transpotation, Shipment & Distribution 78,000
Plant head salaries (1) (15lpa) 125,000
staff salaries (3 white collared staff) 25,000
Total 580,000

Departments Metric
Cost base
Plant head wokring hrs
Staff Salaries (white collar): 3 across Operating
and support department wokring hrs
No of machies Units
Cost of m/c's Rs
Horse power of m/c HP
Floor space %
Transpotation, Shipment & Distribution Units
Number of light points Units
Production hours worked total hrs/per day

Cost Head Amt/day

Power 3,846
rent and rates 3,077
Insurance machinary 1,885
Depreciation on Machinery 3,769
lighting 962
Transpotation, Shipment & Distribution 3,000
Shop head salaries (35lpa) 4,808
staff salaries (3*10lpa) 962
Total 22,308

//Allocation of service departments to production departments

Service department Operating departments
Production
Maintenance 0.70
HR and Admin 0.75
Finance 0.60
RnD and Product Mgmt 0.60

//Cost absorption

Production
Total Overheads 9,940
Maintenance 1,695
HR and Admin 530
Finance 684
RnD and Product Mgmt 840
Total costs 13,689
Hours 48
costs/hr 285
hourly distribution 6.4
overheads absorbed 1,825
Direct material
Direct labour
Total production cost per unit of football

Margin @30% 686

Sales price 2,974

mation done on the basis of per unit of Foot ball produced

Rate Total cost

30 30
20 20
30 30
40 40
20 20
140

Operating departments Manpower

Production Logistics Quality
2
1
1 20
1 12
1
2 1

6 2 1

Total sales every year 14,976

Cost/day
3,846
3,077
1,885
3,769
962
3,000
4,808
 962
22,308

Operating departments Support department

Production Logistics Quality Maintenance HR and Admin

6 0.5 0.75 0.75 0.50

4.0 0.5 0.5 2 0.25

6 4 4 2 1
1,000,000 300,000 300,000 250,000 100,000
60 8 10 30 2
60 15 5 5 3
- 3,000 - - -
10 4 4 2 2
48 32 32 - -

Operating departments Suppo

Allocation Base Production Logistics Quality Maintenance
Horsepower of m/c 2,060.44 274.73 343.41 1,030.22
Floor space 1,846.15 461.54 153.85 153.85
Cost of m/c 769.23 230.77 230.77 192.31
Cost of m/c 1,538.46 461.54 461.54 384.62
No of lights 360.58 120.19 240.38 60.10
Number of units - 3,000.00 - -
Hour worked 2,884.62 240.38 360.58 360.58
hours worked 480.77 60.10 60.10 240.38
9,940 4,849 1,851 2,422

Operating departments
Logistics Quality
0.10 0.20
0.20 0.05
0.20 0.20
0.10 0.30

Logistics Quality
4,849 1,851
242 484 2,422
141 35 707
228 228 1,139
140 420 1,399
5,601 3,018
32 32
175 94
1.2 0.4
210 38 2,073
140
75
2,288
Hexagons
Pentagons
Support department
Finance RnD and Product Mgmt

1.00 0.5

0.5 0.25
- 4
200,000 300,000
- 2
3 10
- -
2 2
- -

Support department
HR and Admin Finance RnD and Product Mgmt Total
68.68 - 68.68 3,846
76.92 76.92 307.69 3,077
76.92 153.85 230.77 1,885
153.85 307.69 461.54 3,769
60.10 60.10 60.10 962
- - - -
240.38 480.77 240.38 4,808
30.05 60.10 30.05 962
707 1,139 1,399 19,308
 Allocation ratio matrix
Production Logistics Quality Maintenance HR and Admin Finance
power 60 8 10 30 2 -
rent 60 15 5 5 3 3
insurance 20,000.00 6,000.00 6,000.00 5,000.00 2,000.00 4,000.00
dep 40,000.00 12,000.00 12,000.00 10,000.00 4,000.00 8,000.00
lighting 12 4 8 2 2 2
Transpotation, Shipmen - 100 - - - -
shop head salaries 6 0.5 0.75 0.75 0.50 1.00
staff salaries 4.0 0.5 0.5 2 0.25 0.5
RnD and Product Mgmt Total
2 112
10 100
6,000.00 49,000
12,000.00 98,000
2 32
- 100
0.5 10
0.25 8
Football : Premium Football

Direct Material Costs //Estimation done on the basis of per unit of Foot ball produ

Raw material Qty

Rubber bladders 1
Synthetic lather (Polyurethane) 1
Polycotton 1
Special Stitches 1
Nylon waxed cord 1
Total Direct Raw material cost per unit

Direct Labor costs

Process Station
Lamination Process 1
Cutting panels (hexagons and Pentagons) 2
Printing Process 3
Handstitching soccerball 4

Total

Wage rate @ 50/hr

Total Direct labor (manpower) 9

Wage rate/hr 50
Total working hrs/day 8
Total Direct labor costs/day 3,600
Total number of units produced/day 24
Direct labor costs per unit 150

Manufacturing Over heads

Manufacturing overheads Cost/month

Power 100,000
rent and rates 80,000
Insurance machinary 49,000
Depreciation on Machinery 98,000
lighting 25,000
Plant head salaries (1) (15lpa) 125,000
Transpotation, Shipment & Distribution 78,000
staff salaries (3 white collared staff) 25,000
Total 580,000

Departments Metric
Cost base
Plant head wokring hrs
Staff Salaries (white collar): 3 across Operating
and support department wokring hrs
No of machies Units
Cost of m/c's Rs
Horse power of m/c HP
Floor space %
Transpotation, Shipment & Distribution Units
Number of light points Units
Production hours worked total hrs/per day

Cost Head Amt/day

Power 3,846
rent and rates 3,077
Insurance machinary 1,885
Depreciation on Machinery 3,769
lighting 962
Transpotation, Shipment & Distribution 3,000
Shop head salaries (35lpa) 4,808
staff salaries (3*10lpa) 962
Total 22,308

//Allocation of service departments to production departments

Service department Operating departments
Production
Maintenance 0.70
HR and Admin 0.75
Finance 0.60
RnD and Product Mgmt 0.60

//Cost absorption

Production
Total Overheads 9,940
Maintenance 1,695
HR and Admin 530
Finance 684
RnD and Product Mgmt 840
Total costs 13,689
Hours 32
costs/hr 428
hourly distribution 6.4
overheads absorbed 2,738
Direct material
Direct labour
Total production cost per unit of football

Margin @30% 1,015

Sales price 4,398

mation done on the basis of per unit of Foot ball produced

Rate Total cost

50 50
40 40
40 40
50 50
30 30
210

Operating departments Manpower

Production Logistics Quality
2
1
1 20
1 12
1
2 1

6 2 1

Total sales every year 7,488

Cost/day
3,846
3,077
1,885
3,769
962
4,808
3,000
 962
22,308

Operating departments Support department

Production Logistics Quality Maintenance HR and Admin

6 0.5 0.75 0.75 0.50

4.0 0.5 0.5 2 0.25

6 4 4 2 1
1,000,000 300,000 300,000 250,000 100,000
60 8 10 30 2
60 15 5 5 3
- 3,000 - - -
10 4 4 2 2
32 32 16 - -

Operating departments Suppo

Allocation Base Production Logistics Quality Maintenance
Horsepower of m/c 2,060.44 274.73 343.41 1,030.22
Floor space 1,846.15 461.54 153.85 153.85
Cost of m/c 769.23 230.77 230.77 192.31
Cost of m/c 1,538.46 461.54 461.54 384.62
No of lights 360.58 120.19 240.38 60.10
Number of units - 3,000.00 - -
Hour worked 2,884.62 240.38 360.58 360.58
hours worked 480.77 60.10 60.10 240.38
9,940 4,849 1,851 2,422

Operating departments
Logistics Quality
0.10 0.20
0.20 0.05
0.20 0.20
0.10 0.30

Logistics Quality
4,849 1,851
242 484 2,422
141 35 707
228 228 1,139
140 420 1,399
5,601 3,018
32 16
175 189
1.2 0.4
210 75 3,023
210
150
3,383
Hexagons
Pentagons
Support department
Finance RnD and Product Mgmt

1.00 0.5

0.5 0.25
- 4
200,000 300,000
- 2
3 10
- -
2 2
- -

Support department
HR and Admin Finance RnD and Product Mgmt Total
68.68 - 68.68 3,846
76.92 76.92 307.69 3,077
76.92 153.85 230.77 1,885
153.85 307.69 461.54 3,769
60.10 60.10 60.10 962
- - - -
240.38 480.77 240.38 4,808
30.05 60.10 30.05 962
707 1,139 1,399 19,308
 Allocation ratio matrix
Production Logistics Quality Maintenance
power 60 8 10 30
rent 60 15 5 5
insurance 20,000.00 6,000.00 6,000.00 5,000.00
dep 40,000.00 12,000.00 12,000.00 10,000.00
lighting 12 4 8 2
Transpotation, Shipment & Distribution - 100 - -
shop head salaries 6 0.5 0.75 0.75
staff salaries 4.0 0.5 0.5 2
matrix
HR and Admin Finance RnD and Product Mgmt Total
2 - 2 112
3 3 10 100
2,000.00 4,000.00 6,000.00 49,000
4,000.00 8,000.00 12,000.00 98,000
2 2 2 32
- - - 100
0.50 1.00 0.5 10
0.25 0.5 0.25 8
Jersey : Training Jersey

Direct Material Costs //Estimation done on the basis of per unit of jersey produc

Raw material Qty

Football Jersy
Rice knit fabric 1
Thread 1
Printing Slate 1
Elastane 1
Stitching needles 1

Total Direct Raw material cost per unit

Direct Labor costs

Process Station
Cutting Fabric 1
Stitching Components 2
Printing 3
Finishing 4
Packing 5

Total Direct labor required

Wage rate @ 40/hr

Total Direct labor (manpower) 13

Wage rate/hr 40
Total working hrs/day 8
Total Direct labor costs/day 4,160
Total number of units produced/day 90
Direct labor costs per unit 46

Manufacturing Over heads

Manufacturing overheads Cost/month

Power 80,000
rent and rates 64,000
Insurance machinary 26,100
Depreciation on Machinery 65,250
lighting 20,000
Transpotation, Shipment & Distribution 90,000
Plant head salaries (1) (15lpa) 83,333
staff salaries (4 white collared staff) 30,000
Total 458,683

Departments Metric
Cost base
Plant head wokring hrs
Staff Salaries (white collar): 4 across Operating
and support department wokring hrs
No of machies Units
Cost of m/c's Rs
Horse power of m/c HP
Floor space %
Transpotation, Shipment & Distribution Units
Number of light points Units
Production hours worked total hrs/per day

Cost Head Amt

Power 3,077
rent and rates 2,462
Insurance machinary 1,004
Depreciation on Machinery 2,510
lighting 769
Transpotation, Shipment & Distribution 3,462
Shop head salaries (35lpa) 3,205
staff salaries (3*10lpa) 1,154
Total 17,642

//Allocation of service departments to production departments

Operating departments
Production
Maintenance 0.75
HR and Admin 0.60
Finance 0.60
RnD and Product Mgmt 0.60
//Cost absorption

Production
Total Overheads 7,935
Maintenance 1,246
HR and Admin 351
Finance 438
RnD and Product Mgmt 509
Total costs 10,479
Hrs 64
costs/hr 164
hourly distribution 6.4
overheads absorbed 1,048
Direct material
Direct labour
Total production cost per unit of football

Margin @20% 260

Sales price 1,557

timation done on the basis of per unit of jersey produced

Rate Total cost

40 40
3 3
20 20
13 13
12 12

88

Operating departments Manpower

Production Logistics Quality
3
1
2
1 1
2
1
1 1

9 3 1

Total sales every year 28,080

Cost/day
3,077
2,462
1,004
2,510
 769
3,462
3,205
1,154
17,642

Operating departments Support department

Production Logistics Quality Maintenance HR and Admin

6 0.5 0.75 0.75 0.50

4.0 0.5 0.5 2 0.25

7 4 3 2 1
700,000 150,000 100,000 75,000 90,000
70 8 10 30 2
60 15 5 5 3
- 3,462 - - -
18 10 5 3 2
64 64 48 - -

Operating departments Support d

Allocation Base Production Logistics Quality Maintenance
Horsepower of m/c 1,765.45 201.77 252.21 756.62
Floor space 1,476.92 369.23 123.08 123.08
Cost of m/c 538.46 115.38 76.92 57.69
Cost of m/c 1,346.15 288.46 192.31 144.23
No of lights 307.69 170.94 85.47 51.28
Number of units - 3,462.00 - -
Hour worked 1,923.08 160.26 240.38 240.38
hours worked 576.92 72.12 72.12 288.46
7,935 4,840 1,042 1,662

Operating departments
Logistics Quality
0.10 0.15
0.20 0.20
0.20 0.20
0.10 0.30
Logistics Quality
4,840 1,042
166 249
117 117
146 146
85 254
5,354 1,809
64 48
84 38
1.2 0.4
100 15 1,163
88
46
1,298
Support department
Finance RnD and Product Mgmt

1.00 0.5

0.5 0.25
- 2
90,000 100,000
- 2
3 10
- -
2 5
- -

Support department
HR and Admin Finance RnD and Product Mgmt Total
50.44 - 50.44 3,077
61.54 61.54 246.15 2,462
69.23 69.23 76.92 1,004
173.08 173.08 192.31 2,510
34.19 34.19 85.47 769
- - - -
160.26 320.51 160.26 3,205
36.06 72.12 36.06 1,154
585 731 848 14,180
 Allocation ratio matrix
Production Logistics Quality Maintenance HR and Admin Finance
power 70 8 10 30 2 -
rent 60 15 5 5 3 3
insurance 14,000.00 3,000.00 2,000.00 1,500.00 1,800.00 1,800.00
dep 35,000.00 7,500.00 5,000.00 3,750.00 4,500.00 4,500.00
lighting 18 10 5 3 2 2
Transpotation, Shipmen - 100 - - - -
shop head salaries 6 0.5 0.75 0.75 0.50 1.00
staff salaries 4.0 0.5 0.5 2 0.25 0.5
RnD and Product Mgmt Total
2 122
10 100
2,000.00 26,100
5,000.00 65,250
5 45
- 100
0.5 10
0.25 8
Jersey : Sports Jersey

Direct Material Costs //Estimation done on the basis of per unit of jersey produc

Raw material Qty

Football Jersy
Rice knit fabric 1
Thread 1
Printing Slate 1
Elastane 1
Stitching needles 1

Total Direct Raw material cost per unit

Direct Labor costs

Process Station
Cutting Fabric 1
Stitching Components 2
Printing 3
Finishing 4
Packing 5

Total Direct labor required

Wage rate @ 40/hr

Total Direct labor (manpower) 13

Wage rate/hr 40
Total working hrs/day 8
Total Direct labor costs/day 4,160
Total number of units produced/day 60
Direct labor costs per unit 69

Manufacturing Over heads

Manufacturing overheads Cost/month

Power 80,000
rent and rates 64,000
Insurance machinary 26,100
Depreciation on Machinery 65,250
lighting 20,000
Transpotation, Shipment & Distribution 90,000
Plant head salaries (1) (15lpa) 83,333
staff salaries (4 white collared staff) 30,000
Total 458,683

Departments Metric
Cost base
Plant head wokring hrs
Staff Salaries (white collar): 4 across Operating
and support department wokring hrs
No of machies Units
Cost of m/c's Rs
Horse power of m/c HP
Floor space %
Transpotation, Shipment & Distribution Units
Number of light points Units
Production hours worked total hrs/per day

Cost Head Amt

Power 3,077
rent and rates 2,462
Insurance machinary 1,004
Depreciation on Machinery 2,510
lighting 769
Shop head salaries (35lpa) 3,205
Transpotation, Shipment & Distribution 3,462
staff salaries (3*10lpa) 1,154
Total 17,642

//Allocation of service departments to production departments

Operating departments
Production
Maintenance 0.75
HR and Admin 0.60
Finance 0.60
RnD and Product Mgmt 0.60
//Cost absorption

Production
Total Overheads 7,935
Maintenance 1,246
HR and Admin 351
Finance 438
RnD and Product Mgmt 509
Total costs 10,479
Hrs 56
costs/hr 187
hourly distribution 6.4
overheads absorbed 1,198
Direct material
Direct labour
Total production cost per unit of football

Margin @20% 323

Sales price 1,938

timation done on the basis of per unit of jersey produced

Rate Total cost

55 55
5 5
35 35
16 16
14 14

125

Operating departments Manpower

Production Logistics Quality
3
1
2
1 1
2
1
1 1

9 3 1

Total sales every year 18,720

Cost/day
3,077
2,462
1,004
2,510
 769
3,462
3,205
1,154
17,642

Operating departments Support department

Production Logistics Quality Maintenance HR and Admin

6 0.5 0.75 0.75 0.50

4.0 0.5 0.5 2 0.25

7 4 3 2 1
700,000 150,000 100,000 75,000 90,000
70 8 10 30 2
60 15 5 5 3
- 3,462 - - -
18 10 5 3 2
56 32 32 - -

Operating departments Support d

Allocation Base Production Logistics Quality Maintenance
Horsepower of m/c 1,765.45 201.77 252.21 756.62
Floor space 1,476.92 369.23 123.08 123.08
Cost of m/c 538.46 115.38 76.92 57.69
Cost of m/c 1,346.15 288.46 192.31 144.23
No of lights 307.69 170.94 85.47 51.28
Hour worked 1,923.08 160.26 240.38 240.38
Number of units - 3,462.00 - -
hours worked 576.92 72.12 72.12 288.46
7,935 4,840 1,042 1,662

Operating departments
Logistics Quality
0.10 0.15
0.20 0.20
0.20 0.20
0.10 0.30
Logistics Quality
4,840 1,042
166 249
117 117
146 146
85 254
5,354 1,809
32 32
167 57
1.2 0.4
201 23 1,421
125
69
1,615
Support department
Finance RnD and Product Mgmt

1.00 0.5

0.5 0.25
- 2
90,000 100,000
- 2
3 10
- -
2 5
- -

Support department
HR and Admin Finance RnD and Product Mgmt Total
50.44 - 50.44 3,077
61.54 61.54 246.15 2,462
69.23 69.23 76.92 1,004
173.08 173.08 192.31 2,510
34.19 34.19 85.47 769
160.26 320.51 160.26 3,205
- - - -
36.06 72.12 36.06 1,154
585 731 848 14,180
 Allocation ratio matrix
Production Logistics Quality Maintenance
power 70 8 10 30
rent 60 15 5 5
insurance 14,000.00 3,000.00 2,000.00 1,500.00
dep 35,000.00 7,500.00 5,000.00 3,750.00
lighting 18 10 5 3
shop head salaries 6 0.5 0.75 0.75
Transpotation, Shipment & Distribution - 100 - -
staff salaries 4.0 0.5 0.5 2
matrix
HR and Admin Finance RnD and Product Mgmt Total
2 - 2 122
3 3 10 100
1,800.00 1,800.00 2,000.00 26,100
4,500.00 4,500.00 5,000.00 65,250
2 2 5 45
0.50 1.00 0.5 10
- - 100 100
0.25 0.5 0.25 8
Jersey : Messi Jersey

Direct Material Costs //Estimation done on the basis of per unit of jersey produc

Raw material Qty

Football Jersy
Rice knit fabric 1
Thread 1
Printing Slate 1
Elastane 1
Stitching needles 1

Total Direct Raw material cost per unit

Direct Labor costs

Process Station
Cutting Fabric 1
Stitching Components 2
Printing 3
Finishing 4
Packing 5

Total Direct labor required

Wage rate @ 40/hr

Total Direct labor (manpower) 13

Wage rate/hr 40
Total working hrs/day 8
Total Direct labor costs/day 4,160
Total number of units produced/day 20
Direct labor costs per unit 208

Manufacturing Over heads

Manufacturing overheads Cost/month

Power 80,000
rent and rates 64,000
Insurance machinary 26,100
Depreciation on Machinery 65,250
lighting 20,000
Transpotation, Shipment & Distribution 90,000
Plant head salaries (1) (15lpa) 83,333
staff salaries (4 white collared staff) 30,000
Total 458,683

Departments Metric
Cost base
Plant head wokring hrs
Staff Salaries (white collar): 4 across Operating
and support department wokring hrs
No of machies Units
Cost of m/c's Rs
Horse power of m/c HP
Floor space %
Transpotation, Shipment & Distribution Units
Number of light points Units
Production hours worked total hrs/per day

Cost Head Amt

Power 3,077
rent and rates 2,462
Insurance machinary 1,004
Depreciation on Machinery 2,510
lighting 769
Shop head salaries (35lpa) 3,205
Transpotation, Shipment & Distribution 3,462
staff salaries (4*10lpa) 1,154
Total 17,642

//Allocation of service departments to production departments

Operating departments
Production
Maintenance 0.75
HR and Admin 0.60
Finance 0.60
RnD and Product Mgmt 0.60
//Cost absorption

Production
Total Overheads 7,935
Maintenance 1,246
HR and Admin 351
Finance 438
RnD and Product Mgmt 509
Total costs 10,479
Hrs 48
costs/hr 218
hourly distribution 6.4
overheads absorbed 1,397
Direct material
Direct labour
Total production cost per unit of football

Margin @20% 403

Sales price 2,419

timation done on the basis of per unit of jersey produced

Rate Total cost

70 70
10 10
50 50
20 20
30 30

180

Operating departments Manpower

Production Logistics Quality
3
1
2
1 1
2
1
1 1

9 3 1

Total sales every year 6,240

Cost/day
3,077
2,462
1,004
2,510
 769
3,462
3,205
1,153.85
17,642

Operating departments Support department

Production Logistics Quality Maintenance HR and Admin

6 0.5 0.75 0.75 0.50

4.0 0.5 0.5 2 0.25

7 4 3 2 1
700,000 150,000 100,000 75,000 90,000
70 8 10 30 2
60 15 5 5 3
- 3,462 - - -
18 10 5 3 2
48 32 24 - -

Operating departments Support d

Allocation Base Production Logistics Quality Maintenance
Horsepower of m/c 1,765.45 201.77 252.21 756.62
Floor space 1,476.92 369.23 123.08 123.08
Cost of m/c 538.46 115.38 76.92 57.69
Cost of m/c 1,346.15 288.46 192.31 144.23
No of lights 307.69 170.94 85.47 51.28
Hour worked 1,923.08 160.26 240.38 240.38
Number of units - 3,462.00 - -
hours worked 576.92 72.12 72.12 288.46
7,935 4,840 1,042 1,662

Operating departments
Logistics Quality
0.10 0.15
0.20 0.20
0.20 0.20
0.10 0.30
Logistics Quality
4,840 1,042
166 249
117 117
146 146
85 254
5,354 1,809
32 24
167 75
1.2 0.4
201 30 1,628
180
208
2,016
Support department
Finance RnD and Product Mgmt

1.00 0.5

0.5 0.25
- 2
90,000 100,000
- 2
3 10
- -
2 5
- -

Support department
HR and Admin Finance RnD and Product Mgmt Total
50.44 - 50.44 3,077
61.54 61.54 246.15 2,462
69.23 69.23 76.92 1,004
173.08 173.08 192.31 2,510
34.19 34.19 85.47 769
160.26 320.51 160.26 3,205
- - - -
36.06 72.12 36.06 1,154
585 731 848 14,180
 Allocation ratio matrix
Production Logistics Quality Maintenance HR and Admin Finance
power 70 8 10 30 2 -
rent 60 15 5 5 3 3
insurance 14,000.00 3,000.00 2,000.00 1,500.00 1,800.00 1,800.00
dep 35,000.00 7,500.00 5,000.00 3,750.00 4,500.00 4,500.00
lighting 18 10 5 3 2 2
shop head salaries 6 0.5 0.75 0.75 0.50 1.00
Transpotation, Shipmen - 100 - - - -
staff salaries 4.0 0.5 0.5 2 0.25 0.5
RnD and Product Mgmt Total
2 122
10 100
2,000.00 26,100
5,000.00 65,250
5 45
0.5 10
- 100
0.25 8
Shoes

Direct Material Costs //Estimation done on the basis of per pair of shoes produce

Raw material Qty

Football shoes
Fabric 1
Thread 1
sole 1
Stitching needles 1

Total Direct Raw material cost per unit

Direct Labor costs

Process Station
Measured & Cutting Fabric 1
Sole fitted with fabrics 2
Stitching 3
Packaging 4

Total Direct labor required

Wage rate @ 30/hr

Total Direct labor (manpower) 11

Wage rate/hr 30
Total working hrs/day 8
Total Direct labor costs/day 2,640
Total number of units produced/day 100
Direct labor costs per unit 26

Manufacturing Over heads

Manufacturing overheads Cost/month

Power 70,000
rent and rates 20,000
Insurance machinary 27,150
Depreciation on Machinery 54,300
lighting 20,000
Transpotation, Shipment & Distribution 60,000
Plant head salaries (1) (15lpa) 83,333
staff salaries (2 white collared staff) 16,667
Total 351,450

Departments Metric
Cost base
Plant head wokring hrs
Staff Salaries (white collar): 2 across Operating
and support department wokring hrs
No of machies Units
Cost of m/c's Rs
Horse power of m/c HP
Floor space %
Transpotation, Shipment & Distribution Units
Number of light points Units
Production hours worked total hrs/per day

Cost Head Amt

Power 2,692
rent and rates 769
Insurance machinary 1,044
Depreciation on Machinery 2,088
lighting 769
Transpotation, Shipment & Distribution 2,308
Shop head salaries (35lpa) 3,205
staff salaries (2*10lpa) 641
Total 13,518

//Allocation of service departments to production departments

Operating departments
Production
Maintenance 0.65
HR and Admin 0.70
Finance 0.70
RnD and Product Mgmt 0.75
//Cost absorption

Production
Total Overheads 6,217
Maintenance 804
HR and Admin 326
Finance 525
RnD and Product Mgmt 723
Total costs 8,594
Hrs 64
costs/hr 134
hourly distribution 6.4
overheads absorbed 859
Direct material
Direct labour
Total production cost per unit of football

Margin @20% 221

Sales price 1,327

timation done on the basis of per pair of shoes produced

Rate Total cost

25 25
2 2
12 12
13 13

52

Operating departments Manpower

Production Logistics Quality
3
1
2
1
1
2
1

8 2 1

Total sales every year 31,200

Cost/day
2,692
769
1,044
2,088
 769
2,308
3,205
641
13,517

Operating departments Support department

Production Logistics Quality Maintenance HR and Admin

6 0.5 0.75 0.75 0.50

4.0 0.5 0.5 2 0.25

4 2 1 1 1
500,000 50,000 60,000 65,000 60,000
65 10 7 25 2
60 15 5 5 3
- 2,308 - - -
25 8 5 2 1
64 32 16 - -

Operating departments Support department

Allocation Base Production Logistics Quality Maintenance
Horsepower of m/c 1,411.29 217.12 151.99 542.80
Floor space 461.54 115.38 38.46 38.46
Cost of m/c 576.92 57.69 69.23 75.00
Cost of m/c 1,153.85 115.38 138.46 150.00
No of lights 369.82 118.34 73.96 29.59
Number of units - 2,308.00 - -
Hour worked 1,923.08 160.26 240.38 240.38
hours worked 320.51 40.06 40.06 160.26
6,217 3,132 753 1,236

Operating departments
Logistics Quality
0.15 0.20
0.10 0.20
0.15 0.15
0.10 0.15
Logistics Quality
3,132 753
185 247
47 93
113 113
96 145
3,573 1,350
32 16
112 84
1.2 0.4
134 34 1,027
52
26
1,106
Support department
Finance RnD and Product Mgmt

1.00 0.5

0.5 0.25
- 2
90,000 80,000
- 15
3 10
- -
4 -
- -

HR and Admin Finance RnD and Product Mgmt Total

43.42 - 325.68 -
19.23 19.23 76.92 2,692
69.23 103.85 92.31 769
138.46 207.69 184.62 1,044
14.79 59.17 103.55 2,088
- - - -
160.26 320.51 160.26 769
20.03 40.06 20.03 3,205
465 751 963 10,569
 Allocation ratio matrix
Production Logistics Quality Maintenance HR and Admin Finance
power 65 10 7 25 2 -
rent 60 15 5 5 3 3
insurance 15,000.00 1,500.00 1,800.00 1,950.00 1,800.00 2,700.00
dep 30,000.00 3,000.00 3,600.00 3,900.00 3,600.00 5,400.00
lighting 25 8 5 2 1 4
Transpotation, Shipmen - 100 - - - -
shop head salaries 6 0.5 0.75 0.75 0.50 1.00
staff salaries 4.0 0.5 0.5 2 0.25 0.5
RnD and Product Mgmt Total
15 124
10 100
2,400.00 27,150
4,800.00 54,300
7 52
- 100
0.5 10
0.25 8
Pro Shoes
Direct Material Costs //Estimation done on the basis of per pair of shoes produce

Raw material Qty

Football shoes
Fabric 1
Thread 1
sole 1
Stitching needles 1

Total Direct Raw material cost per unit

Direct Labor costs

Process Station
Measured & Cutting Fabric 1
Sole fitted with fabrics 2
Stitching 3
Packaging 4

Total Direct labor required

Wage rate @ 30/hr

Total Direct labor (manpower) 11

Wage rate/hr 30
Total working hrs/day 8
Total Direct labor costs/day 2,640
Total number of units produced/day 80
Direct labor costs per unit 33

Manufacturing Over heads

Manufacturing overheads Cost/month

Power 70,000
rent and rates 20,000
Insurance machinary 27,150
Depreciation on Machinery 54,300
lighting 20,000
Transpotation, Shipment & Distribution 60,000
Plant head salaries (1) (15lpa) 83,333
staff salaries (2 white collared staff) 16,667
Total 351,450

Departments Metric
Cost base
Plant head wokring hrs
Staff Salaries (white collar): 2 across Operating
and support department wokring hrs
No of machies Units
Cost of m/c's Rs
Horse power of m/c HP
Floor space %
Transportation,shipment & distribution Units
Number of light points Units
Production hours worked total hrs/per day

Cost Head Amt

Power 2,692
rent and rates 769
Insurance machinary 1,044
Depreciation on Machinery 2,088
lighting 769
Transpotation, Shipment & Distribution 2,308
Shop head salaries (35lpa) 3,205
staff salaries (2*10lpa) 641
Total 13,518

//Allocation of service departments to production departments

Operating departments
Production
Maintenance 0.65
HR and Admin 0.70
Finance 0.70
RnD and Product Mgmt 0.75

//Cost absorption
 Production
Total Overheads 6,217
Maintenance 804
HR and Admin 326
Finance 525
RnD and Product Mgmt 723
Total costs 8,594
Hrs 56
costs/hr 153
hourly distribution 6.4
overheads absorbed 982
Direct material
Direct labour
Total production cost per unit of football

Margin @20% 258

Sales price 1,545

timation done on the basis of per pair of shoes produced

Rate Total cost

35 35
4 4
17 17
15 15

71

Operating departments Manpower

Production Logistics Quality
3
1
2
1
1
2
1

8 2 1

Total sales every year 24,960

Cost/day
2,692
769
1,044
2,088
769
 2,308
3,205
641
13,517

Operating departments Support department

Production Logistics Quality Maintenance HR and Admin

6 0.5 0.75 0.75 0.50

4.0 0.5 0.5 2 0.25

4 2 1 1 1
500,000 50,000 60,000 65,000 60,000
65 10 7 25 2
60 15 5 5 3
- 2,308 - - -
25 8 5 2 1
56 32 8 - -

Operating departments Support d

Allocation Base Production Logistics Quality Maintenance
Horsepower of m/c 1,411.29 217.12 151.99 542.80
Floor space 461.54 115.38 38.46 38.46
Cost of m/c 576.92 57.69 69.23 75.00
Cost of m/c 1,153.85 115.38 138.46 150.00
No of lights 369.82 118.34 73.96 29.59
Number of units - 2,308.00 - -
Hour worked 1,923.08 160.26 240.38 240.38
hours worked 320.51 40.06 40.06 160.26
6,217 3,132 753 1,236

Operating departments
Logistics Quality
0.15 0.20
0.10 0.20
0.15 0.15
0.10 0.15
Logistics Quality
3,132 753
185 247
47 93
113 113
96 145
3,573 1,350
32 8
112 169
1.2 0.4
134 68 1,184
71
33
1,288
Support department
Finance RnD and Product Mgmt

1.00 0.5

0.5 0.25
- 2
90,000 80,000
- 15
3 10
- -
4 7
- -

Support department
HR and Admin Finance RnD and Product Mgmt Total
43.42 - 325.68 2,692
19.23 19.23 76.92 769
69.23 103.85 92.31 1,044
138.46 207.69 184.62 2,088
14.79 59.17 103.55 769
- - - -
160.26 320.51 160.26 3,205
20.03 40.06 20.03 641
465 751 963 11,210
 Allocation ratio matrix
Production Logistics Quality Maintenance HR and Admin Finance
power 65 10 7 25 2 -
rent 60 15 5 5 3 3
insurance 15,000.00 1,500.00 1,800.00 1,950.00 1,800.00 2,700.00
dep 30,000.00 3,000.00 3,600.00 3,900.00 3,600.00 5,400.00
lighting 25 8 5 2 1 4
Transpotation, Shipmen - 100 - - - -
shop head salaries 6 0.5 0.75 0.75 0.50 1.00
staff salaries 4.0 0.5 0.5 2 0.25 0.5
RnD and Product Mgmt Total
15 124
10 100
2,400.00 27,150
4,800.00 54,300
7 52
- 100
0.5 10
0.25 8
Sports Shoes
Direct Material Costs //Estimation done on the basis of per pair of shoes produce

Raw material Qty

Football shoes
Fabric 1
Thread 1
sole 1
Stitching needles 1

Total Direct Raw material cost per unit

Direct Labor costs

Process Station
Measured & Cutting Fabric 1
Sole fitted with fabrics 2
Stitching 3
Packaging 4

Total Direct labor required

Wage rate @ 30/hr

Total Direct labor (manpower) 11

Wage rate/hr 30
Total working hrs/day 8
Total Direct labor costs/day 2,640
Total number of units produced/day 60
Direct labor costs per unit 44

Manufacturing Over heads

Manufacturing overheads Cost/month

Power 70,000
rent and rates 20,000
Insurance machinary 27,150
Depreciation on Machinery 54,300
lighting 20,000
Transpotation, Shipment & Distribution 60,000
Plant head salaries (1) (15lpa) 83,333
staff salaries (2 white collared staff) 16,667
Total 351,450

Departments Metric
Cost base
Plant head wokring hrs
Staff Salaries (white collar): 2 across Operating
and support department wokring hrs
No of machies Units
Cost of m/c's Rs
Horse power of m/c HP
Floor space %
Transpotation, Shipment & Distribution Units
Number of light points Units
Production hours worked total hrs/per day

Cost Head Amt

Power 2,692
rent and rates 769
Insurance machinary 1,044
Depreciation on Machinery 2,088
lighting 769
Transpotation, Shipment & Distribution 2,308
Shop head salaries (35lpa) 3,205
staff salaries (2*10lpa) 641
Total 13,518

//Allocation of service departments to production departments

Operating departments
Production
Maintenance 0.65
HR and Admin 0.70
Finance 0.70
RnD and Product Mgmt 0.75

//Cost absorption
 Production
Total Overheads 6,217
Maintenance 804
HR and Admin 326
Finance 525
RnD and Product Mgmt 723
Total costs 8,594
Hrs 32
costs/hr 269
hourly distribution 6.4
overheads absorbed 1,719
Direct material
Direct labour
Total production cost per unit of football

Margin @20% 442

Sales price 2,652

timation done on the basis of per pair of shoes produced

Rate Total cost

50 50
7 7
30 30
25 25

112

Operating departments Manpower

Production Logistics Quality
3
1
2
1
1
2
1

8 2 1

Total sales every year 18,720

Cost/day
2,692
769
1,044
2,088
769
 2,308
3,205
641
13,517

Operating departments Support department

Production Logistics Quality Maintenance HR and Admin

6 0.5 0.75 0.75 0.50

4.0 0.5 0.5 2 0.25

4 2 1 1 1
500,000 50,000 60,000 65,000 60,000
65 10 7 25 2
60 15 5 5 3
- 2,308 - - -
25 8 5 2 1
32 16 8 - -

Operating departments Support d

Allocation Base Production Logistics Quality Maintenance
Horsepower of m/c 1,411.29 217.12 151.99 542.80
Floor space 461.54 115.38 38.46 38.46
Cost of m/c 576.92 57.69 69.23 75.00
Cost of m/c 1,153.85 115.38 138.46 150.00
No of lights 369.82 118.34 73.96 29.59
Number of units - 2,308.00 - -
Hour worked 1,923.08 160.26 240.38 240.38
hours worked 320.51 40.06 40.06 160.26
6,217 3,132 753 1,236

Operating departments
Logistics Quality
0.15 0.20
0.10 0.20
0.15 0.15
0.10 0.15
Logistics Quality
3,132 753
185 247
47 93
113 113
96 145
3,573 1,350
16 8
223 169
1.2 0.4
268 68 2,054
112
44
2,210
Support department
Finance RnD and Product Mgmt

1.00 0.5

0.5 0.25
- 2
90,000 80,000
- 15
3 10
- -
4 7
- -

Support department
HR and Admin Finance RnD and Product Mgmt Total
43.42 - 325.68 2,692
19.23 19.23 76.92 769
69.23 103.85 92.31 1,044
138.46 207.69 184.62 2,088
14.79 59.17 103.55 769
- - - -
160.26 320.51 160.26 3,205
20.03 40.06 20.03 641
465 751 963 11,210
 Allocation ratio matrix
Production Logistics Quality Maintenance HR and Admin Finance
power 65 10 7 25 2 -
rent 60 15 5 5 3 3
insurance 15,000.00 1,500.00 1,800.00 1,950.00 1,800.00 2,700.00
dep 30,000.00 3,000.00 3,600.00 3,900.00 3,600.00 5,400.00
lighting 25 8 5 2 1 4
Transpotation, Shipmen - 100 - - - -
shop head salaries 6 0.5 0.75 0.75 0.50 1.00
staff salaries 4.0 0.5 0.5 2 0.25 0.5
RnD and Product Mgmt Total
15 124
10 100
2,400.00 27,150
4,800.00 54,300
7 52
- 100
0.5 10
0.25 8
Premium Shoes
Direct Material Costs //Estimation done on the basis of per pair of shoes produce

Raw material Qty

Football shoes
Fabric 1
Thread 1
sole 1
Stitching needles 1

Total Direct Raw material cost per unit

Direct Labor costs

Process Station
Measured & Cutting Fabric 1
Sole fitted with fabrics 2
Stitching 3
Packaging 4

Total Direct labor required

Wage rate @ 30/hr

Total Direct labor (manpower) 11

Wage rate/hr 30
Total working hrs/day 8
Total Direct labor costs/day 2,640
Total number of units produced/day 60
Direct labor costs per unit 44

Manufacturing Over heads

Manufacturing overheads Cost/month

Power 70,000
rent and rates 20,000
Insurance machinary 27,150
Depreciation on Machinery 54,300
lighting 20,000
Transpotation, Shipment & Distribution 60,000
Plant head salaries (1) (15lpa) 83,333
staff salaries (2 white collared staff) 16,667
Total 351,450

Departments Metric
Cost base
Plant head wokring hrs
Staff Salaries (white collar): 2 across Operating
and support department wokring hrs
No of machies Units
Cost of m/c's Rs
Horse power of m/c HP
Floor space %
Transpotation, Shipment & Distribution Units
Number of light points Units
Production hours worked total hrs/per day

Cost Head Amt

Power 2,692
rent and rates 769
Insurance machinary 1,044
Depreciation on Machinery 2,088
lighting 769
Transpotation, Shipment & Distribution 2,308
Shop head salaries (35lpa) 3,205
staff salaries (2*10lpa) 641
Total 13,518

//Allocation of service departments to production departments

Operating departments
Production
Maintenance 0.65
HR and Admin 0.70
Finance 0.70
RnD and Product Mgmt 0.75

//Cost absorption
 Production
Total Overheads 6,217
Maintenance 804
HR and Admin 326
Finance 525
RnD and Product Mgmt 723
Total costs 8,594
Hrs 24
costs/hr 358
hourly distribution 6.4
overheads absorbed 2,292
Direct material
Direct labour
Total production cost per unit of football

Margin @20% 562

Sales price 3,374

timation done on the basis of per pair of shoes produced

Rate Total cost

55 55
10 10
45 45
30 30

140

Operating departments Manpower

Production Logistics Quality
3
1
2
1
1
2
1

8 2 1

Total sales every year 18,720

Cost/day
2,692
769
1,044
2,088
769
 2,308
3,205
641
13,517

Operating departments Support department

Production Logistics Quality Maintenance HR and Admin

6 0.5 0.75 0.75 0.50

4.0 0.5 0.5 2 0.25

4 2 1 1 1
500,000 50,000 60,000 65,000 60,000
65 10 7 25 2
60 15 5 5 3
- 2,308 - - -
25 8 5 2 1
24 16 8 - -

Operating departments Support d

Allocation Base Production Logistics Quality Maintenance
Horsepower of m/c 1,411.29 217.12 151.99 542.80
Floor space 461.54 115.38 38.46 38.46
Cost of m/c 576.92 57.69 69.23 75.00
Cost of m/c 1,153.85 115.38 138.46 150.00
No of lights 369.82 118.34 73.96 29.59
Number of units - 2,308.00 - -
Hour worked 1,923.08 160.26 240.38 240.38
hours worked 320.51 40.06 40.06 160.26
6,217 3,132 753 1,236

Operating departments
Logistics Quality
0.15 0.20
0.10 0.20
0.15 0.15
0.10 0.15
Logistics Quality
3,132 753
185 247
47 93
113 113
96 145
3,573 1,350
16 8
223 169
1.2 0.4
268 68 2,627
140
44
2,811
Support department
Finance RnD and Product Mgmt

1.00 0.5

0.5 0.25
- 2
90,000 80,000
- 15
3 10
- -
4 7
- -

Support department
HR and Admin Finance RnD and Product Mgmt Total
43.42 - 325.68 2,692
19.23 19.23 76.92 769
69.23 103.85 92.31 1,044
138.46 207.69 184.62 2,088
14.79 59.17 103.55 769
- - - -
160.26 320.51 160.26 3,205
20.03 40.06 20.03 641
465 751 963 11,210
 Allocation ratio matrix
Production Logistics Quality Maintenance HR and Admin Finance
power 65 10 7 25 2 -
rent 60 15 5 5 3 3
insurance 15,000.00 1,500.00 1,800.00 1,950.00 1,800.00 2,700.00
dep 30,000.00 3,000.00 3,600.00 3,900.00 3,600.00 5,400.00
lighting 25 8 5 2 1 4
Transpotation, Shipmen - 100 - - - -
shop head salaries 6 0.5 0.75 0.75 0.50 1.00
staff salaries 4.0 0.5 0.5 2 0.25 0.5
RnD and Product Mgmt Total
15 124
10 100
2,400.00 27,150
4,800.00 54,300
7 52
- 100
0.5 10
0.25 8
Goalkeeping Gloves
Direct Material Costs //Estimation done on the basis of unit of Gloves produced

Raw material Qty

Football gloves
lather 1
latex 1
Polyurethane 1
Stitching needls 1

Total Direct Raw material cost per unit

Direct Labor costs

Process Station
Latex dipping 1
Leaching & Beading 2
Vulcanization 3
Stripping 4

Total Direct labor required

Wage rate @ 30/hr

Total Direct labor (manpower) 11

Wage rate/hr 30
Total working hrs/day 8
Total Direct labor costs/day 2,640
Total number of units produced/day 50
Direct labor costs per unit 53

Manufacturing Over heads

Manufacturing overheads Cost/month

Power 70,000
rent and rates 50,000
Insurance machinary 27,150
Depreciation on Machinery 54,300
lighting 20,000
Transpotation, Shipment & Distribution 50,000
Plant head salaries (1) (15lpa) 83,333
staff salaries (2 white collared staff) 16,667
Total 371,450

Departments Metric
Cost base
Plant head wokring hrs
Staff Salaries (white collar): 2 across Operating
and support department wokring hrs
No of machies Units
Cost of m/c's Rs
Horse power of m/c HP
Floor space %
Transpotation, Shipment & Distribution Units
Number of light points Units
Production hours worked total hrs/per day

Cost Head Amt

Power 2,692
rent and rates 1,923
Insurance machinary 1,044
Depreciation on Machinery 2,088
lighting 769
Shop head salaries (35lpa) 3,205
Transpotation, Shipment & Distribution 1,923
staff salaries (3*10lpa) 641
Total 14,286

//Allocation of service departments to production departments

Operating departments
Production
Maintenance 0.65
HR and Admin 0.70
Finance 0.70
RnD and Product Mgmt 0.75

//Cost absorption
 Production
Total Overheads 6,909
Maintenance 841
HR and Admin 346
Finance 546
RnD and Product Mgmt 809
Total costs 9,451
Hrs 32
costs/hr 295
hourly distribution 6.4
overheads absorbed 1,890
Direct material
Direct labour
Total production cost per unit of football

Margin @20% 474

Sales price 2,843

Estimation done on the basis of unit of Gloves produced

Rate Total cost

30 30
20 20
25 25
25 25

100

Operating departments Manpower

Production Logistics Quality
3
1
2
1
1
2
1

8 2 1

Total sales every year 15,600

Cost/day
2,692
1,923
1,044
2,088
769
 1,923
3,205
641
14,287

Operating departments Support department

Production Logistics Quality Maintenance HR and Admin

6 0.5 0.75 0.75 0.50

4.0 0.5 0.5 2 0.25

4 2 1 1 1
500,000 50,000 60,000 65,000 60,000
65 10 7 25 2
60 15 5 5 3
- 1,923 - - -
25 8 5 2 1
32 16 8 - -

Operating departments Support d

Allocation Base Production Logistics Quality Maintenance
Horsepower of m/c 1,411.29 217.12 151.99 542.80
Floor space 1,153.85 288.46 96.15 96.15
Cost of m/c 576.92 57.69 69.23 75.00
Cost of m/c 1,153.85 115.38 138.46 150.00
No of lights 369.82 118.34 73.96 29.59
Hour worked 1,923.08 160.26 240.38 240.38
Number of units - 1,923.00 - -
hours worked 320.51 40.06 40.06 160.26
6,909 2,920 810 1,294

Operating departments
Logistics Quality
0.15 0.20
0.10 0.20
0.15 0.15
0.10 0.15
Logistics Quality
2,920 810
194 259
49 99
117 117
108 162
3,389 1,447
16 8
212 181
1.2 0.4
254 72 2,217
100
53
2,370
Support department
Finance RnD and Product Mgmt

1.00 0.5

0.5 0.25
- 2
90,000 80,000
- 15
3 10
- -
4 7
- -

Support department
HR and Admin Finance RnD and Product Mgmt Total
43.42 - 325.68 2,692
48.08 48.08 192.31 1,923
69.23 103.85 92.31 1,044
138.46 207.69 184.62 2,088
14.79 59.17 103.55 769
160.26 320.51 160.26 3,205
- - - -
20.03 40.06 20.03 641
494 779 1,079 12,363
 Allocation ratio matrix
Production Logistics Quality Maintenance HR and Admin Finance
power 65 10 7 25 2 -
rent 60 15 5 5 3 3
insurance 15,000.00 1,500.00 1,800.00 1,950.00 1,800.00 2,700.00
dep 30,000.00 3,000.00 3,600.00 3,900.00 3,600.00 5,400.00
lighting 25 8 5 2 1 4
shop head salaries 6 0.5 0.75 0.75 0.50 1.00
Transpotation, Shipmen - 100 - - - -
staff salaries 4.0 0.5 0.5 2 0.25 0.5
RnD and Product Mgmt Total
15 124
10 100
2,400.00 27,150
4,800.00 54,300
7 52
0.5 10
- 100
0.25 8
Premium Goalkeeping Gloves
Direct Material Costs //Estimation done on the basis of unit of Gloves produced

Raw material Qty

Football gloves
lather 1
latex 1
Polyurethane 1
Stitching needls 1

Total Direct Raw material cost per unit

Direct Labor costs

Process Station
Latex dipping 1
Leaching & Beading 2
Vulcanization 3
Stripping 4

Total Direct labor required

Wage rate @ 30/hr

Total Direct labor (manpower) 11

Wage rate/hr 30
Total working hrs/day 8
Total Direct labor costs/day 2,640
Total number of units produced/day 30
Direct labor costs per unit 88

Manufacturing Over heads

Manufacturing overheads Cost/month

Power 70,000
rent and rates 50,000
Insurance machinary 27,150
Depreciation on Machinery 54,300
lighting 20,000
Transpotation, Shipment & Distribution 50,000
Plant head salaries (1) (15lpa) 83,333
staff salaries (2 white collared staff) 16,667
Total 371,450

Departments Metric
Cost base
Plant head wokring hrs
Staff Salaries (white collar): 2 across Operating
and support department wokring hrs
No of machies Units
Cost of m/c's Rs
Horse power of m/c HP
Floor space %
Transpotation, Shipment & Distribution Units
Number of light points Units
Production hours worked total hrs/per day

Cost Head Amt

Power 2,692
rent and rates 1,923
Insurance machinary 1,044
Depreciation on Machinery 2,088
lighting 769
Shop head salaries (35lpa) 3,205
Transpotation, Shipment & Distribution 1,923
staff salaries (3*10lpa) 641
Total 14,286

//Allocation of service departments to production departments

Operating departments
Production
Maintenance 0.65
HR and Admin 0.70
Finance 0.70
RnD and Product Mgmt 0.75

//Cost absorption
 Production
Total Overheads 6,909
Maintenance 841
HR and Admin 346
Finance 546
RnD and Product Mgmt 809
Total costs 9,451
Hrs 24
costs/hr 394
hourly distribution 6.4
overheads absorbed 2,520
Direct material
Direct labour
Total production cost per unit of football

Margin @20% 612

Sales price 3,672

Estimation done on the basis of unit of Gloves produced

Rate Total cost

35 35
25 25
30 30
35 35

125

Operating departments Manpower

Production Logistics Quality
3
1
2
1
1
2
1

8 2 1

Total sales every year 9,360

Cost/day
2,692
1,923
1,044
2,088
769
 1,923
3,205
641
14,287

Operating departments Support department

Production Logistics Quality Maintenance HR and Admin

6 0.5 0.75 0.75 0.50

4.0 0.5 0.5 2 0.25

4 2 1 1 1
500,000 50,000 60,000 65,000 60,000
65 10 7 25 2
60 15 5 5 3
- 1,923 - - -
25 8 5 2 1
24 16 8 - -

Operating departments Support d

Allocation Base Production Logistics Quality Maintenance
Horsepower of m/c 1,411.29 217.12 151.99 542.80
Floor space 1,153.85 288.46 96.15 96.15
Cost of m/c 576.92 57.69 69.23 75.00
Cost of m/c 1,153.85 115.38 138.46 150.00
No of lights 369.82 118.34 73.96 29.59
Hour worked 1,923.08 160.26 240.38 240.38
Number of units - 1,923.00 - -
hours worked 320.51 40.06 40.06 160.26
6,909 2,920 810 1,294

Operating departments
Logistics Quality
0.15 0.20
0.10 0.20
0.15 0.15
0.10 0.15
Logistics Quality
2,920 810
194 259
49 99
117 117
108 162
3,389 1,447
16 8
212 181
1.2 0.4
254 72 2,847
125
88
3,060
Support department
Finance RnD and Product Mgmt

1.00 0.5

0.5 0.25
- 2
90,000 80,000
- 15
3 10
- -
4 7
- -

Support department
HR and Admin Finance RnD and Product Mgmt Total
43.42 - 325.68 2,692
48.08 48.08 192.31 1,923
69.23 103.85 92.31 1,044
138.46 207.69 184.62 2,088
14.79 59.17 103.55 769
160.26 320.51 160.26 3,205
- - - -
20.03 40.06 20.03 641
494 779 1,079 12,363
 Allocation ratio matrix
Production Logistics Quality Maintenance HR and Admin Finance
power 65 10 7 25 2 -
rent 60 15 5 5 3 3
insurance 15,000.00 1,500.00 1,800.00 1,950.00 1,800.00 2,700.00
dep 30,000.00 3,000.00 3,600.00 3,900.00 3,600.00 5,400.00
lighting 25 8 5 2 1 4
shop head salaries 6 0.5 0.75 0.75 0.50 1.00
Transpotation, Shipmen - 100 - - - -
staff salaries 4.0 0.5 0.5 2 0.25 0.5
RnD and Product Mgmt Total
15 124
10 100
2,400.00 27,150
4,800.00 54,300
7 52
0.5 10
- 100
0.25 8