1. Handout 3 MA Problem 1
1. Production Budget
Products
Tribolte
Polycal
Powder
Unit sold
+ FG at End
- FG at Start
80,000
6,000
(5,000)
40,000
2,000
(4,000)
100,000
8,000
(10,000)
Units to be produced
81,000
38,000
98,000
Products
A
B
Unit Produced
Tribolte
Polycal
Powder
81,000
81,000
76,000
----------
38,000
162,000
---------98,000
Material Usage
157,000
260,000
2. Material Usage
3. Material Purchase Budget
Products
A
B
Material Usage
+ Material at End
- Material at Start
157,000
12,000
(10,000)
260,000
15,000
(12,000)
Material usage (QTY)
X Purchase Price
159,000
0.2
263,000
0.1
Purchase Price Budget
31,800
26,300

2. 4. Manufacturing Budget
Tribolte
(81,000)
Material:
A
(81,000 X 1 kg X
B
(81,000 X 2 kg X
Material
Direct labor (81,000 X 0.05
VFOH
(81,000 X 0.05
Manuf. Cost of Tribolte
0.2) 0.2
0.3) 0.2
X 8) 0.4
X 6) 0.3
1.1
Polycal
Material:
A
(38,000 X 0.4)
B
(38,00 X 0.1)
Material
Direct labor (38,000 X 0.125 X 8) 1
VFOH
(38,000 X 0.125 X 6) 0.75
Manuf. Cost of Polycal
2.15
Powder
Material:
A
(98,000 X
B
(98,000 X 1 kg X 0.3) 0.2
Material
Direct labor (98,000 X 0.0125 )
VFOH
(98,000 X ) 0.1
Manuf. Cost of Powder
1.1
16,200
16,200
32,400
32,400
24,300
89,100/=
15,200
38,000
285,000
81,7000/=
26,950/=

3. 1. Total Manufacturing cost
Tribolte
89,100
Polycal
81,700
Powder
26,950
Variable manuf. cost
197,750
Add: Joint Fixed cost
40,000
Total manufacturing cost
237,750/=