This document provides information about Chenab Hair Brush Mfg, which manufactures hair brushes. It discusses the company's objectives, products, costs, budgets and production reports. The company aims to provide quality brushes at competitive prices. Key elements discussed include material, labor, manufacturing overhead costs, sales forecasts, production budgets and departmental cost reports.

1. ADVANCED COST & MANAGEMENT
PROJECT
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2. 2
Company Name
Chenab Hair Brush Mfg.

3. Introduction
 The name of our business is Chenab Hair Brush Mfg.
 We has been a manufacturer of fine quality & professional
styling hair brushes.
 Our factory is located in area of industrial sector hattar district
haripur.
 There is no other manufacturing factory of Hair Brush’s products
in the locality of hattar district haripur and near places.
 We serve the markets of Haripur, Hassan Abdal, Taxila,
WahCantt, Attock , & Rawalpindi.
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4. Objective
The right Quality at the right price and give the customer the values
for its money.
Mission Statement
 To provide the best quality Hair Brushes.
 With most competitive pricing.
 On a timely delivery basis.
 Utilizing the most advance technology.
 To accomplish its motives, the company has devoted itself to
present new fashionable hairbrushes of exclusive quality.
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5.  Our Slogan:-
“For the style, you deserve!”
 Products:-
Other Product includes Hair Brushes, Cloth Brush.
 Newness:-
There are providing different types of Brush. Keeping in
view different hairstyles and consumer’s affection for color
and design, the company has developed a wide range of over
designs of hair brushes
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6. Element of Cost
Material
 Direct Material
Direct material for Hair Brush
Include Bristle ,Carbon, Nylon, Stainless Steel, Plastic.
 Indirect Material:-
The indirect material for our business include
– Label
– Carton Package
Labour
 Direct Labour
We have skilful manpower that is working in our factory. We also
have plants and machinery for production process.
 Indirect Labour
 Production supervisor
 Purchasing staff
 Materials handling staff
 Materials management staff
 Quality control staff
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7.  Manufacturing Overheads
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The manufacturing overhead is a expenses for our business
includes salaries, utility expenses.
 Process Costing System
A hair brush in a process costing system because Assigning
direct materials like(Bristle ,Carbon, nylon, stainless steel, plastic.) ,
direct labor, and factory overhead expenses to specific processes,
departments, or cost objects in an effort to value finished goods
inventory.

8. Distribution Cost
Data
Material Rs.20/unit
Labour Rs.10/unit
FOH :-
Variable Cost = Rs.1.5/unit
Fixed Cost = Rs.3.5/unit
Rs.5/unit
Total Mfg Cost Rs.35/unit
Company Profit Rs.10/unit
Company Price Rs.45/unit
Wholesaler Margin Rs.5/unit
Wholesale Price Rs.50/unit
Retailer Margin Rs.5/unit
Retail Price Rs.55/unit
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9. Chenab Hair Brush , Mfg
Sale/Revenue Budget
Quarter
Q1 Q2 Q3 Q4 TOTAL
Units Sold 10,000 15,000 20,000 25,000 70,000 units
Selling Price/unit Rs.45 Rs.45 Rs.45 Rs.45
Total Sales 450,000 Rs.675,000 Rs.9,00,000 Rs.11,25,000 Rs. 31, 50,000
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10. Chenab Hair Brush , Mfg
Production Budget
Quarter
Q1 Q2 Q3 Q4 Q1 TOTAL
Units Sold 10,000 15,000 20,000 25,000 10,000
Add: F/G Ending
Inventory
1500 2000 2500 1000 2500
11500 17000 22500 26,000 12500
Less: F/G Opening
Inventory
1000 1500 2000 2500 1000
Units Produced 10500 15500 20500 23500 11500 81500
Units
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11. Chenab Hair Brush , Mfg
Material Purchased Budget
Quarter
Q1 Q2 Q3 Q4 Q1
Units Produce 10500 15500 20500 23500 11500
×Per Unit Required 39g 39g 39g 39g 39g
Total Material Need 409500 604500 799500 916500 448500
Add: F/G Ending
Inventory
60450g 79950g 91650g 44850 g
469950 684450 891150 961350
Less: F/G Opening
Inventory
409500g 60450g 79950g 91650g
Units Produced 60450 624000 811200 869700
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Total Material Purchased =Rs.2365350

12. Chenab Hair Brush , Mfg
Direct Labour Budget
Quarter
Q1 Q2 Q3 Q4 Q1 TOTAL
Units of Production 10500 15500 20500 23500 11500 81500unit
Direct Labour Hour/Unit 0.20/H 0.20/H 0.20/H 0.20/H 0.20/H
Total Hours Required 2100 3100 4100 4700 2300 16300
Hour
Hourly Wages Rate Rs. 50/H Rs. 50/H Rs. 50/H Rs. 50/ Rs. 50/
Total Direct Labour Cost 105000 155000 205000 235000 115000 815000
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13. Working
Per Cost
Direct Labour Cost Per Unit = Rs.10/Unit
Cost of 81500 Units = 81500 unit × Rs.10/Unit
= Rs.815000
Hours Required to Produce 81500 Units = 16300Hours
Cost Per Hour = Direct Labour Cost ÷ No. of Hours
= Rs. 815000 ÷ 16300Hours
= Rs. 50/Hour
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14. Chenab Hair Brush , Mfg
Manufactured Over Head Budget
Quarter
Q1 Q2 Q3 Q4 TOTAL
Budgeted D.L.H 2100 3100 4100 4700
Variable OH Rate (W-1) Rs.7.5/H Rs.7.5/H Rs.7.5/H Rs.7.5/H
Total variable OH Cost Rs.15750 Rs.23250 Rs.30750 Rs.35250
Add: Fixed OH Cost
(W-2)
Rs.71313 Rs.71313 Rs.71313 Rs.71313
Total Mfg OH Cost Rs. 87063 Rs.94563 Rs.102063 Rs.106563 Rs.390252
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15. Working
 Variable OH Rate
Variable Cost per Unit = Rs.1.5/unit
Variable Cost on 81500 units = 81500 units × Rs.1.5/unit
= Rs.122250
Hours Needed for 81500 units = 16300 Hours
Variable Cost / Hour = Variable Cost ÷ No. Of Hours
= Rs. 122250 ÷ 16300Hours
= Rs.7.5/Hour
 Fixed OH Cost
Fixed OH Cost per Unit = Rs.3.5/unit
Total Units to be Produced = 81500units
Total Fixed OH Cost = 81500units × Rs.3.5/unit
= Rs.285250
Fixed OH Cost per Quarter = Total Fixed OH Cost ÷ 4
= Rs. 285250 ÷ 4
= Rs.71313 / Quarter
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16. Manufacturing Overhead Rate
FOH Applied Rate:-
FOH Applied Rate = Total Estimated FOH ÷ Estimated Capacity
(D.L.H)
= Rs. 390252 ÷ 16300Hours
= Rs.23.94/D.L.H
Applying Overhead Rate
FOH Applied = FOH Applied Rate ×Actual Capacity
= Rs.23.94/DLH × 2000 Hours
=Rs.47880
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17. Chenab Hair Brush , Mfg
Department No.1
Cost of Production Report
Units Started 81500
Total Units 81500
Completed & Transfer 70000
Ending Work in Process Inventory 11500 81500
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18. Fishbone Diagram
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Production
Labour Material
Equipment Electricity
(Machinery) (Breakdown)