Professional Documents
Culture Documents
March
300
800
800
300
1,250
1,500
$ 900
$ 900
$ 600
$ 600
$400,000
$140,000
$400,000
$140,000
The selling price per unit is $2,500. The budgeted level of production used to
calculate the budgeted fixed manufacturing cost per unit is 1,000 units. There
are no price, efficiency, or spending variances. Any production-volume variance
is written off to cost of goods sold in the month in which it occurs.
Required:
1. Prepare income statements for FGK in January, February, and March of
2012 under a) Variable costing and b) Absorption costing
2. Explain the difference in operating income for January, February, and
March under variable and absorption costing
Problem 2
The variable manufacturing costs per unit of FGK Corporation are as follows:
January
$500
February
$500
March
$500
100
100
300
$900
300
$900
Required:
1. Prepare income statements for FGK in January, February, and March of
2012 under throughput costing.
Problem 3
PT. Primatron manufactures and sell LED TV 32 inch. Below are data regarding
companys production on January and February 2013:
Asistensi-2
Cost-Volume-Profit Analysis
Problem 1: UTS 2011-2012
PT Newstar is distributor that sell Me-Pad a brand new type of gadget at an
exhibition Newstar Plans to sell Me Pad for $500 each. The company purchase
Me-Pad from manufacturer at $350 each, with the privilege of returning any
unsold units for a full refund. The exhibition offer Newstar with 2 alternatives:
1. A fixed payment 0f $5.000 during exhibition
2. 10% of total revenues earned during exhibition
Assume Newstar incur no other cost
Required:
1. Calculate BEP unit for option 1 and 2
2. At what level of unit sold will Newstar earn the same operating income
under either option? For what range of unit sales will Newstar prefer option
1 over option 2?
3. Calculate margin of safety and degree of degree of operating leverage at
sales of $100 units for two rental option.
Problem 2
A company that sells its single product for $40 per unit uses cost-volume profit
analysis in its planning. The companys after tax income for the past year was
$1.188.000 after applying effective tax rate 40%. The projected costs for
manufacturing and selling its single product in the coming year are in the next
column.
Variable costs per unit:
Direct material
$5
Direct labor
4
Manufacturing overhead
6
Selling
and 3
administrative costs
Total variable costs 18
per unit
Annual fixed operating
costs:
Manufacturing overhead
6.200.0
00
Selling
and 3.700.0
administrative costs
00
Total
annual
fixed 9.900.
costs
000
Required:
a. Calculate the total number of units needed to break even.
b. Calculate sales volume in dollar required in the coming year to earn aftertax net income as the past year.
c. The company has learned that a new direct material is available that will
increase the quality of its product. The new material will increase the
direct material costs by $3 per unit. The company will increase the selling
price of the product to $50 per unit and increase its marketing costs
may
june
total
April
may
june
total
may
june
total
price
quantity
total revenues
2. production budget (in units)
for the year ending june 30
COST BUD
available from beg dm
+to be purchased
dm to be used
April
may
june
COST BUD
purchases
DML/u
nit
total
dml
rate
April
may
june
total
april
may
june
total
5. MOH costs budget
for the year ending june 30
VC
variable manuf overhead
FC
fixed manufacturing
overhead
total MOH
6a. unit costs of end FG inv
for the year ending june 30
cost per unit
of input
DM
DML
MOH
total
6b. ending inventories budget
product
input/unit
tot
output
al
total
may
cost/un
it
total
FG:
total ending
inv
7. COGS budget
for the year ending june 30
April
may
june
may
june
beg FG inv
DM used
DML
MOH
COGM
COGAS
-end FG inv
COGS
8. nonmanufacturing costs budget
for the year ending june 30
April
VC:
var selling and adm
expense
FC:
fixed selling and adm
expense
TC
9. budgeted INCOME STATEMENT
for the year ending june 30
june
cost/un
it
total
April
may
june
rev
-cogs
gross margin
-operating costs:
operating income
LIABILITIES:
STOCKHOLDERS'
EQUITY:
TA
TL&SHE
Soal 2
1. revenues
budget
product
TR
Total
2. production
budget
Product
bud unit sales
+target end FG
total req
-beg FG
units to be
produced
3a. DM usage budget in Q in
$
Material
P UNIT BUD
dm req for
dm req for
dm req for
total q dm to be
used
COST BUD
available from
beg dm
+to be
purchased
dm to be used
3b. DM purchases budget
Material
P UNIT BUD
to be used
+target end inv
total req
-beg inv
purchase to be
made
COST BUD
purchases
4. DML costs
budget
product
Qproduced
DML/unit
total dml
rate
total
5. MOH costs
budget
VC
FC
total MOH
6a. unit costs of end FG inv
product
total
cost/unit
input/unit
total
input/unit
DM1
DM2
DM3
DML
MOH
Total
6b. ending inventories
budget
Q
DM:
FG:
7. COGS budget
beg FG inv
DM used
DML
MOH
COGM
COGAS
-end FG inv
COGS
8. nonmanufacturing costs
budget
VC:
FC:
TC
cost/unit
total
total
9. budgeted INCOME
STATEMENT
rev
-cogs
gross margin
-operating
costs:
operating
income
LIABILITIES:
STOCKHOLDERS' EQUITY:
TA
TL&SHE
Asistensi-3
Master Budget and Responsibility Accounting
Problem 1 Master Budget
Royal Company is preparing budgets for the second quarter ending June 30.
Budgeted sales of the companys only product for the next five months are:
April.........
May.........
June.........
July..........
August.....
20,000
50,000
30,000
25,000
15,000
units
units
units
units
units
The company desires to have inventory on hand at the end of each month
equal to 20% of the following months budgeted unit sales.
Variable selling and administrative expenses are $0.50 per unit sold.
Fixed selling and administrative expenses are $70,000 per month and
include $10,000 in depreciation.
Required:
1.
Sales budget.
2.
Production budget.
3.
4.
5.
6.
7.
Quantity
1
meter
per
shirt
3 ounces per
shirt
0.25 DLH per
Rp 10.000 per DLH shirt
Inventory at Jan 1
75 meter at Rp9.000
100
ounces
at
Rp750
Overhead costs for 2012 are estimated for fixed and variable (measur
c. components:
ed
in direct labor hour (DLH)). Overhead are allocated to finish product using
direct
labor hour as the cost allocation base.
Fixed
Cost Variable
Cost
Supplies
Power
Maintenance
Supervision
Depreciation
Other
Component
Rp 20.000.000
Rp 60.000.000
Rp 75.000.000
Rp 15.000.000
Component
Rp 500
Rp 1.000
-
Required :
Prepare a partial annual operating budget for the year 2012 :
(1) Production Budget
(2) Direct Material Usage Budget
(3) Direct Labor Cost Budget
(4) Manufacturing Overhead Cost Budget
(5) Cost of Goods Sold Budget
Problem 3: Cash Budget (Mid-Term Examination, 27th March 2012)
Champion Hardware is a hardware wholesaler. All sales are credit sales with the
term of payment 5/10, n/end of month. Information about the stores operation
follows:
44.000
Inventory
Property and
depreciation)
280.000
1.724.000
2.238.000
Total Assets
Equipment
(net
of
$1.180.000
190.000
accumulated
324.000
Common Stock
1.590.000
Retained Earning
324.000
2.238.000
Required :
1. Prepare a cash budget for January 2012 in detail (show your computation)
to show the expected cash balance at the end of January 2012.
2. Suppose you are preparing a budgeted balance sheet as of January 31,
2012. Please show the balance for the following account :
a. Cash
b. Account Receivable
c. Account Payable
If the company has minimum cash balance policy of $40.000, how this will affect
your answer.
Asistensi-4
Flexible Budgets, Variances, and Management Control 1
Problem 1 :
Connor Companys budgeted prices for direct materials, direct manufacturing
labor, and direct marketing (distribution) labor per attach case are $40, $8, and
$12, respectively. The president is pleased with the following performance report:
Direct materials
Direct manufacturing labor
F
Direct marketing (distribution) labor
F
Actual Costs
Static
Budget
Variance
$364,000
$400,000
$36,000 F
78,000
80,000
2,000
110,000
120,000
10,000
Actual output was 8,800 attach cases. Assume all three direct-cost items shown
are variable costs. Is the presidents pleasure justified? Prepare a revised
performance report that uses a flexible budget and a static budget.
Problem 2 :
Bank Management Printers, Inc., produces luxury checkbooks with three checks
and stubs per page. Each checkbook is designed for an individual customer and
is ordered through the customers bank. The companys operating budget for
September 2012 included these data:
Number of checkbooks
15,000
Selling price per book
$ 20
Variable cost per book
$8
Fixed costs for the month
$145,000
Number of checkbooks produced and sold
12,000
Average selling price per book
$ 21
Variable cost per book
$7
Fixed costs for the month
$150,000
The executive vice president of the company observed that the operating
income for September was much lower than anticipated, despite a higher-thanbudgeted selling price and a lower-than-budgeted variable cost per unit. As the
companys management accountant, you have been asked to provide
explanations for
the disappointing September results.
Bank Management develops its flexible budget on the basis of budgeted
per-output-unit revenue and per-output-unit variable costs without detailed
analysis of budgeted inputs.
1. Prepare a static-budget-based variance analysis of the September
performance. qu
2. Prepare a flexible-budget-based variance analysis of the September
performance.
3. Why might Bank Management find the flexible-budget-based variance
analysis more informative than the static-budget-based variance analysis?
Explain your answer.
Problem 3 :
Market-Share and Market-Size Variances. Rhaden Company produces
sweat-resistant headbands for joggers. Information pertaining to Rhadens
operations for May 2011 follows:
Actual
Budget
Units sold
230,550
220,000
Sales revenue
$3,412,140
$3,300,000
68%
64%
4,350,000
4,400,000
100 boxes
Walnut
80 boxes
Macadamia
120 boxes
Secret Seasoning
20 boxes
During the second quarter of 2013, the Production Manager of PT Alam Sejahtera
reported that Karawang Barat Plant has manufactured 150 batches of Kacang
Premium, and it has been distributed in several upscale supermarkets in
Jabodetabek. The quantity of inputs and price of inputs are reported as below.
Ingredients
Actual Quantity
Actual Cost
Actual Mix
Pistachio
16.640 boxes
Rp 856.960.000
32,5%
Walnut
11.520 boxes
Rp 402.048.000
22,5%
Macadamia
19.968 boxes
Rp 539.136.000
39%
Secret Seasoning
3.072 boxes
Rp 192.000.000
6%
Total Actual
51.200 boxes
Rp 1.990.144.000
100%
1. What is the budgeted cost of direct materials for the 30.000 packs?
2. Calculate the total direct materials efficiency variance.
3. Calculate the total direct materials mix and yield variances. What are these
variances telling you about the 30.000 packs produced this quarter? Are the
variances large enough to investigate?
Problem 5
Bapak Aria employs three workers in his doll making workshop. The first worker
is Ibu Setya and she has been making dolls for 25 years. She is paid Rp 150.000
per hour. The second worker is Ibu Laras, and is paid Rp 100.000 per hour. The
third worker is Ibu Ditha, and is paid Rp 95.000 per hour. According to the
statistic, one doll is made in 6 hours and budgeted as follows:
Quantity
Price per hour of Cost of one doll
labor
Ibu Setya
2 hours
Rp 50.000,-
Rp 100.000,-
Ibu Laras
3 hours
Rp 30.000,-
Rp 90.000,-
Ibu Ditha
1 hours
Rp 25.000,-
Rp 25.000,-
Rp 16.200.000,-
Rp 5.625.000,-
Rp 38.925.000,-
Asistensi-5
Flexible Budgets, Variances, and Management Control 2
Problem 1: Activity-based costing, batch-level variance analysis.
Jo Nathan Publishing Company specializes in printing specialty textbooks for a
small but profitable college market. Due to the high setup costs for each batch
printed, Jo Nathan holds the book requests until demand for a book is
approximately 500. At that point Jo Nathan will schedule the setup and
production of the book. For rush orders, Jo Nathan will produce smaller batches
for an additional charge of $400 per setup. Budgeted and actual costs for the
printing process for 2012 were as follows:
Static-Budget
Actual Results
Amounts
Number of books produced
300,000
324,000
480
setup
Hours to set up printers
8 hours
8.2 hours
$40
$39
$105,600
$119,000
hour
Total fixed setup overhead costs
6. For direct variable setup costs, compute the price and efficiency variances.
7. For fixed setup overhead costs, compute the spending and the productionvolume variances.
8. What qualitative factors should Jo Nathan consider before accepting or
rejecting a special order?
Problem 2: Direct Manufacturing Labor and Variable Manufacturing
Overhead Variances.
Sarah Beths Art Supply Company produces various types of paints. Actual direct
manufacturing labor hours in the factory that produces paint have been higher
than budgeted hours for the last few months and the owner, Sarah B. Jones, is
concerned about the effect this has had on the companys cost overruns.
Because variable manufacturing overhead is allocated to units produced using
direct manufacturing labor hours, Sarah feels that the mismanagement of labor
will have a two fold effect on company profitability. Following are the relevant
budgeted and actual results for the second quarter of 2011.
Budget
Information
Actual Results
25.000
29.000
2 Hours
2,3 Hours
$ 10/Hours
$ 10,4/Hours
$ 20/Hours
$ 18,95/Hours
Required
1. Calculate the direct manufacturing labor price and efficiency variances and
indicate whether each is favorable (F) or unfavorable (U).
2. Calculate the variable manufacturing overhead spending and efficiency
variances and indicate whether each is favorable (F) or unfavorable (U).
3. For both direct manufacturing labor and variable manufacturing overhead, do
the price/spending variances help Sarah explain the efficiency variances?
4. Is Sarah correct in her assertion that the mismanagement of labor has a
twofold effect on cost over-runs? Why might the variable manufacturing
overhead efficiency variance not be an accurate repre-sentation of the effect
of labor overruns on variable manufacturing overhead costs?
Actual Cost:
Direct Material Purchased and Used
188,700
(102,000
pounds)
Direct Labor
Manufacturing Overhead
output
Direct Labor
hour/unit
Variabel Overhead
11.90
per
direct-
labor hour
Production Budget:
Direct Material
$ 165,000
Direct Labor
$ 140,000
Manufacturing Labor
$ 199,000
companys actual production and sales was 21,000 units, which was 17,5%
market share. Average selling price was $ 38. The company expected to
get
20% market share. The exacted market for this product is 100.000 units. Its
selling price is budgeted at $ 40.
Required :
Prepare a complete various report and analysis consists of :
a. Variable-overhead spending&efficiency variances
b. Fixed-overhead spending & production volume variances
c. Sales price variance
d. Sales volume variance
e. Sales quantity variance
f. Market Share and Market Size Variance
g. The flexible budget variance
Asistensi-6
Revenues, Sales Variances, and Customer-Profitability Analysis
Problem 1
PT Buana Sentosa makes a component for branded LED TVs called X27-A6. This
component is manufactured upon order from the manufacturer of the TV, so PT
Buana Sentosa keeps no inventory. The list price is Rp 750.000,-, but
manufacturer of the TV often receives discount of 5% if it order large enough.
The component is packed in a box that contains 100 pieces of X27-A6. If the
order is not in a multiplier of 100, it is put in a single box (i.e. 245 pieces is
packed in 3 boxes). To retain its relationship with the customer, it uses a policy
that accepts free exchange of defective units within 10 days of delivery.
According to the data, a unit of X27-A6 costs Rp 250.000,-, and the details of
customer level costs are as follows:
Order taking
Rp 1.250.000,- per order
Product handling Rp 750.000,- per box
Warehousing
Rp 450.000,- per day
Rush order processing
Rp 7.000.000,- per rush order
Exchange and repair
Rp 350.000,- per unit
As being detailed below, four biggest customers of PT Buana Sentosa during
2013 are as follows:
LG
Samsung
Sony
Toshiba
No. Of units 15.000
purchased
19.500
16.500
8.500
Discounts
given
10%
10%
10%
No. Of orders
40
23
27
65
No. Of boxes
195
165
85
in 30
22
55
rush 10
21
11
15
Days
warehouse
No. Of
orders
150
No. Of units 30
exchanged
1. Calculate the customer level operating income for these four customers.
Prepare a customer profitability analysis by ranking the customer from most to
least profitable.
2. Does PT Buana Sentosa have unprofitable customers?
Problem 2: (Adapted from UTS 2011-2012)
VITALIFE is a local distributor of herbal medicine products. With the growing
competitiveness in the industry, VITALIFEs new controller, Budi Black, wants to
use ABC system instead of traditional costing to examine individual customer
profitability within each distribution market. He identified there are five activities
related with customer cost: order processing, line item ordering, store deliveries,
carton deliveries, and shelf-stocking. He focuses first on Blue Green Co. Single
store distribution market. Four customers are used to exemplify the insight
availability with the ABC approach. For the February 2012, he listed the following
data for those selected customers:
Anabelle
Pharmacy
Britannia
Apothecary
Chandelier
Pharmacy
Dakar
Store
Drug
14
15
10
17
Total
store 10
deliveries
14
Avg. Cartons 15
shipped
per
store delivery
22
13
16
Avg. Hours of 4
shelf stocking
per
store
Avg.
items
order
12
Line 8
per
delivery
He also collects the following information related with customers cost activities:
Activity Area
Cost Driver Rate in 2012
Order Processing
Store Deliveries
Carton Deliveries
Shelf Stocking
Required:
1. Compute customer level operating income using ABC approach for those
selected customers.
2. Based on the above calculations, what opinion should Budi Black consider with
regard to those selected individual customers