anjo ltd case
TRANSCRIPT
BudgetedVeneer CD Rack Mahogany CD Rack Total
Units Sold 1300 1500 2800Revenues 97500 300000 397500Variable Costs
Direct Materials 26000 75000 101000Direct Labor 15600 30000 45600Variable Overhead 11700 22500 34200Packaging 9750 11250 21000
Total Variable Costs 63050 138750 201800Contribution Margin 34450 161250 195700Fixed Manufacturing Costs 35000Operating Income 160700
Standard Costs Per Unit Standard Requirements per unit
Veneer MahoganySelling Price 75 200Wood 15 45 Wood Sheet(Sheet & Foot)Rack Insert 5 5 Rack Insert(Units)Packaging 7.5 7.5 Packaging(Kgs)Labour 12 20 Labour(Hrs)Variable Overhead 9 15Total Variable cost 48.5 92.5
Standard Requirements per unit Standard Rates
Veneer Mahogany Veneer Mahogany
0.5 9 Wood Sheet(Sheet & Foot) 30 51 1 Rack Insert(Units) 5 51 1 Packaging(Kgs) 7.5 7.53 5 Labour(Hrs) 4 4
ActualVeneer CD Rac Mahogany CD RTotal
Units Sold 1000 1700 2700Revenues 70000 357000 427000Variable Costs
Direct Materials 22600 105850 128450Direct Labor 15000 42500 60000Variable Overhead 18000 18000 36000Packaging 7881.4814815 13398.518519 21280
Total Variable Costs 63481.481481 179748.51852 245730Contribution Margin 6518.5185185 177251.48148 181270Fixed Manufacturing Costs 40000Operating Income 141270
Actual Costs Per Unit Actual Requirements per unit
Veneer Mahogany Veneer MahoganySelling Price 70 210Wood 19.6 59.264705882 Wood Sheet(Sh 0.7 9.1176470588Rack Insert 3 3 Rack Insert(Uni 1 1Packaging 7.8814814815 7.8814814815 Packaging(Kgs) 1.037037037 1.037037037Labour 15 25 Labour(Hrs) 3 5Variable Overh 9 15Total Variable 54.481481481 110.14618736
Actual Rates
Veneer Mahogany
Wood Sheet(Sh 28 6.5Rack Insert(Uni 3 3Packaging(Kgs) 7.6 7.6Labour(Hrs) 5 5
Variance Analysis
Income Statement
Budgeted Actual VarianceUnits Sold 2800 2700 -100 URevenues 397500 427000 29500 FVariable Costs
Direct Materials 101000 128450 27450 UDirect Labor 45600 60000 14400 UVariable Overhead 34200 36000 1800 UPackaging 21000 21280 280 U
Total Variable Costs 201800 245730 43930 UContribution Margin 195700 181270 -14430 UFixed Manufacturing Costs 35000 40000 5000 UOperating Income 160700 141270 -19430 U
Actual Rates Standard RatesVeneer Mahogany Veneer Mahogany
Wood Sheet(She28 6.5 Wood Sheet(Sheet & 30 5Rack Insert(Unit3 3 Rack Insert(Units) 5 5Packaging(Kgs) 7.6 7.6 Packaging(Kgs) 7.5 7.5Labour(Hrs) 5 5 Labour(Hrs) 4 4
1 2Actual Input Quantity x Actual Rate Actual Input Quantity x Budgeted Rate
Veneer Mahogany Veneer Mahogany
Wood Sheet(She19.6 59.26471 Wood Sheet(Sheet & 21 45.58824Rack Insert(Unit3 3 Rack Insert(Units) 5 5Packaging(Kgs) 7.881481 7.881481 Packaging(Kgs) 7.777778 7.777778Labour(Hrs) 15 25 Labour(Hrs) 12 20
Actual Requirements per unitMahogany Veneer Mahogany
Wood Sheet(Sheet & 0.7 9.117647Rack Insert(Units) 1 1Packaging(Kgs) 1.037037 1.037037Labour(Hrs) 3 5
(2)-(1)Spending Variance
Mahogany Veneer Mahogany
Wood Sheet(Sheet & 1.4 F -13.67647 URack Insert(Units) 2 F 2 FPackaging(Kgs) -0.103704 U -0.103704 ULabour(Hrs) -3 U -5 U
Actual Costs Per Unit Standard Costs Per UnitVeneer Mahogany Veneer
Wood 19.6 59.26471 Wood 15Rack Insert 3 3 Rack Insert 5Packaging 7.881481 7.881481 Packaging 7.5Labour 15 25 Labour 12
1 2Actual Input Quantity x Actual Cost Price Actual Input Quantity x Budgeted Cost Price
Veneer Mahogany Veneer
Wood Sheet 13.72 540.3547 Wood Sheet(Sheet & Foot) 10.5Rack Insert 3 3 Rack Insert(Units) 5Packaging( 8.173388 8.173388 Packaging(Kgs) 7.777778Labour(Hrs 45 125 Labour(Hrs) 36
Actual Requirements per unitMahogany Veneer Mahogany
45 Wood Sheet 0.7 9.1176475 Rack Insert 1 1
7.5 Packaging( 1.037037 1.03703720 Labour(Hrs 3 5
(2)-(1)Actual Input Quantity x Budgeted Cost Price Price Variance
Mahogany Veneer Mahogany
410.2941 Wood Sheet -3.22 F -130.0606 F5 Rack Insert 2 U 2 U
7.777778 Packaging( -0.39561 F -0.39561 F100 Labour(Hrs -9 F -25 F
BudgetedVeneer CD Rack Mahogany CD Rack Total
Units Sold 1000 1700 2700Revenues 75000 340000 415000Variable Costs
Direct Materials 20000 85000 105000Direct Labor 12000 34000 46000Variable Overhead 9000 25500 34500Packaging 7500 12750 20250
Total Variable Costs 48500 157250 205750Contribution Margin 26500 182750 209250Fixed Manufacturing Costs 35000Operating Income 174250
Standard Costs Per Unit Standard Requirements per unit
Veneer Mahogany VeneerSelling Price 75 200Wood 15 45 Wood Sheet(Sheet & Foot) 0.5Rack Insert 5 5 Rack Insert(Units) 1Packaging 7.5 7.5 Packaging(Kgs) 1Labour 12 20 Labour(Hrs) 3Variable Overhead 9 15Total Variable cost 48.5 92.5
Standard Rates
Mahogany Veneer Mahogany
9 Wood Sheet(Sheet & Foot) 30 51 Rack Insert(Units) 5 51 Packaging(Kgs) 7.5 7.55 Labour(Hrs) 4 4