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Assignment

Table of Content

1. Variable Cost and Fixed Cost 03

2. NOC 05
3. Flexible Budget Performance Report 06
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4. Actual Price and Standard Price, Labor Rate 07

5. The implication on non-variable manufacturing cost if the decline in 09
order by Rosenthal continues

6. REFERENCES 10

Question: 01

 Calculate Variable cost:

Total sales unit 14000

Direct material 85400

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Direct labor 246000

Indirect labor 44400

Idle time 14200
Clean Time 10000
Miss calcaneus supplies 4000
Variable sipping 28000
Total variable cost 432000

Variable cost per unit = (total variable cost/total sales unit)

= (432000/14000)
= $30.857
So Variable cost per unit is $30.857

 Calculate Fixed cost:

Total sales unit or actual sales unit 14000

Supervision 5 8800
Rent 20000
Depreciation 60000 Total fixed Cost
Other 10400 per unit = (Total
Selling and administration cost 112000 Fixed
Total Fixed Cost 261200 Cost/Actual
Total sales unit or actual sales unit 14000 Sales Unit)
Supervision 58800
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= (261200/14000)
= $18.65
So Total fixed Cost per unit is $18.65

 Calculate Actual cost per unit of production

Actual cost per unit of production

= (variable cost per unit + fixed cost per unit)
= ($30.857 + $18.65)
= $49.514
So Actual cost per unit of production $49.514

Shipping Cost per unit:

= (Total Shipping Cost / actual sales unit)
= (28000/14000)
= $2
So, Shipping Cost per unit is $2

Question: 02
Actual Sales (Q) 14000
Revenue (48*Q) 672000
DM (6*Q) 84000
Dl (16*Q) 224000
IL (3.2*Q) 44800
Idle Time (0.8*Q) 11200
Clean up time (0.6*Q) 8400
Miss scalenus Supplies (0.28*Q) 4045
Total VMC 375446
Total Sipping Cost (1.6*Q) 22400
CM 273155
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Non variable Manufacturing Cost:

Super vision 57600
Rent 20000
Depreciation 60000
Other 10400
Total VMC 148000
Selling administration 112000
Total Non-Variable manufacturing cost 260000
NOC 13155

Question: 03
Farr ceramic industry
Flexible Budget Performance Report
Actual Revenue Flexible Activity Planning
Result Spending Budget Variance Budget
Variance
Unit (Q) 14000 14000 18000
Sales 686000 14000 (F) 672000 292000 864000

Variable Manufacturing Cost

Direct material 85400 1400 (U) 84000 24000 108000
Direct labor 246000 22000 22400 64000 288000
Indirect labor 44400 400 44800 12800 57600
Idle time 14200 3000 11200 3200 14400
Clean Time 10000 1600 8400 2400 10800
Miss calcaneus supplies 4000 45 4045 1155 5200
Total variable Manufacturing cost 404000 27557 376445 107555 484000
Variable sipping cost 28000 5600 22400 6400 28800

Contribution Margin 254000 19155 273155 78045 351200

Non variable Manufacturing

Cost:
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58800 1200 57600 000 57600

Super vision 20000 000 20000 000 20000
Rent 60000 000 60000 000 60000
Depreciation 10400 000 10400 000 10400
Other 149200 1200 148000 000 148000
Total N-VMC 112000 000 112000 000 112000
Selling administration Cost

Net Operating Income (7200) 20355 13155 78045 91200

Question: 04

Number Of Unit 14000

Standard of Kilogram euro0.13

Total Standard Kg allowed 1820

Standard cost per Kg $46
Total Standard Cost (1820*46) = 83720
Actual Cost Incurred (1821*46.92) = 85395

 Material Variance = (actual Cost-Standard Cost)

= 85395 – 83720
= $1675 (U)

 Material Price Variance = AQ(AP-SP)

=1820 (46.92-46)
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=$1675

We can see that the actual worth per unit is greater than the normal price, making it unaffordable.

 Material Quantity Variance = SP (AQ-SQ)

= 46(1820-1820)
=0
In this equation, the production manager makes excellent utilization of the row materials.

Actual Hour (AH) = 5467

Actual Rate (AR) = 45
Standard Rate (SR) = 40
Standard Hour (SH) = 5600 [14000*0.40 = 5600]
 Labor Rate Variance = AH (AR – SR)
= 5467 (45-40)
= 27335 (U)

 Labor Efficiency Variance = SR (AH – SH)

= 40 (5467-5600)
= 5320 (F)

Here we see that in this report the labor rate variance is unfavorable, because the actual price is
higher than the standard price.
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Question 05:
The implication on non-variable manufacturing cost if the decline in order by Rosenthal
continues:
So here We can look at that the company's operational profits are negative. Operating profits are
the cash that a company makes use of to run its everyday operations. We can also see the
company's favorable and unfavorable profits from that table. We can see this in this situation.
Rahman had asked that the manufacturing unit accountant accumulate the May numbers as fast
as feasible because of the lower so as an amount. The accountant's fast reaction, on the
alternative hand, exceeds his expectations. The month-to-month record takes some running days
to reach the company office. The manufacturing unit's accountant promised Rahman that he
might entire the overall performance record in the future with a few more labor. Rosenthal's
order for the cup has been budgeted for 2019 with the aid of using the global division, which
taken into consideration the income unit and manufacturing costs. Because income is unaffected
with the aid of using modifications, the monthly finances are probably set up with the aid of
using taking the simplest one issue into account. When the order amount became decreased in
January, no modifications to the May finances had been made. Non-variable costs, as all of us
know, are constant costs. This varies relying upon the extent of output.
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REFERENCES

 managerial-accounting-15th-edition
 https://www.rosenthalco.uk/en/cms/company/the-rosenthal-company/company-history/
 www.farr.com.bd