Cost_sample

1,420 views
1,281 views

Published on

Cost_sample

Published in: Technology, Business
1 Comment
0 Likes
Statistics
Notes
  • Be the first to like this

No Downloads
Views
Total views
1,420
On SlideShare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
42
Comments
1
Likes
0
Embeds 0
No embeds

No notes for slide

Cost_sample

  1. 1. Manufacturing Cost Accounting Superfactory Excellence Program™ www.superfactory.com
  2. 2. Outline <ul><li>Cost Terms, Concepts, and Classifications </li></ul><ul><li>Job Order Costing </li></ul><ul><li>Cost Behavior </li></ul><ul><li>Cost – Volume – Profit </li></ul><ul><li>Activity Based Costing </li></ul><ul><li>Profit Planning </li></ul><ul><li>Standard Costs </li></ul><ul><li>Flexible Budgets and Overhead Analysis </li></ul><ul><li>Relevant Costs for Decision-Making </li></ul>
  3. 3. Product Costs - A Closer Look Costs associated with the goods that are completed during the period are transferred to finished goods inventory.
  4. 4. The Contribution Format The contribution margin format emphasizes cost behavior. Contribution margin covers fixed costs and provides for income.
  5. 5. Calculating Breakeven in Units <ul><li>Here is the information from Wind Bicycle Co.: </li></ul>
  6. 6. The Master Budget Direct Materials Budget Ending Inventory Budget Production Budget Selling and Administrative Budget Direct Labor Budget Manufacturing Overhead Budget Cash Budget Budgeted Financial Statements Sales Budget
  7. 7. The Direct Materials Budget
  8. 8. Labor Variances Summary Actual Hours Actual Hours Standard Hours × × × Actual Rate Standard Rate Standard Rate Rate variance $310 unfavorable Efficiency variance $300 unfavorable 1,550 hours 1,550 hours 1,500 hours × × × $6.20 per hour $6.00 per hour $6.00 per hour = $9,610 = $9,300 = $9,000
  9. 9. Flexible Budget Performance Report CheeseCo Cost Total Formula Fixed Flexible Actual Per Hour Costs Budget Results Variances Machine hours 8,000 8,000 0 Variable costs Indirect labor 4.00 $ 32,000 $ 34,000 $ $ 2,000 U Indirect material 3.00 24,000 25,500 1,500 U Power 0.50 4,000 3,800 200 F Total variable costs 7.50 $ 60,000 $ 63,300 $ $ 3,300 U Fixed Expenses Depreciation 12,000 $ 12,000 $ 12,000 $ 0 Insurance 2,000 2,000 2,050 50 U Total fixed costs 14,000 $ 14,050 $ 50 U Total overhead costs 74,000 $ 77,350 $ $ 3,350 U
  10. 10. Utilization of a Constrained Resource <ul><li>Let’s calculate the contribution margin per unit of the scarce resource, machine A1. </li></ul>If there are no other considerations, the best plan would be to produce to meet current demand for Product 2 and then use remaining capacity to make Product 1.

×