Sales and Manufacturing Expenses: Budget and Actual (2014)
You will use this table to complete Milestones One and Two.
|
|
Budget ($)
|
Actual ($)
|
|
|
|
|
|
Sales
|
1,050,000
|
991,700
|
|
|
|
|
|
Expenses
|
|
|
|
Materials - Cedar
|
225,000
|
248,160
|
|
Materials - Plastic
|
37,500
|
37,741
|
|
Factory Worker Labor
|
300,000
|
332,760
|
|
Materials - Indirect
|
3,000
|
2,585
|
|
Factory Depreciation
|
78,000
|
78,000
|
|
Factory Utilities
|
12,000
|
12,000
|
|
Factory Maintenance and Repairs
|
5,000
|
4,500
|
|
Shipping ($2.25/each)
|
112,500
|
105,750
|
|
Sales Commissions ($2.00/unit sold)
|
100,000
|
94,000
|
|
Office Rent
|
12,000
|
12,000
|
|
Advertising
|
20,000
|
20,000
|
|
Liability insurance
|
5,000
|
5,000
|
|
Office Depreciation
|
1,000
|
1,000
|
|
Office Salaries
|
48,000
|
48,000
|
|
|
|
|
|
Total Expenses
|
959,000
|
1,001,496
|
Contribution Margin: Static Budget and Actual Results (2014)
You will use this table to complete Milestone Two.
|
|
Actual Results
|
Static Budget Amount
|
|
|
|
|
|
Units Sold
|
47,000
|
50,000
|
|
Revenues ($)
|
991,700
|
1,050,000
|
|
Manufacturing Costs ($)
|
|
|
|
Variable
|
621,246
|
565,500
|
|
Fixed
|
94,500
|
95,000
|
|
Gross Margin
|
275,954
|
389,500
|
Standard Variable Manufacturing Costs (2014)
You will use this table to complete Milestone Two.
|
|
Static Budget Costs
|
Standard Input
|
|
|
|
|
|
Direct Materials: Cedar
|
225,000
|
3.0 ft/unit
|
|
Direct Materials: Plastic
|
37,500
|
1.0 ft/unit
|
|
Direct Manufacturing Labor
|
300,000
|
0.5 hrs/unit
|
|
Variable Manufacturing Overhead
|
3,000
|
0.3 ft/unit
|
Actual Variable Manufacturing Costs (2014)
You will use this table to complete Milestone Two.
|
|
Actual Costs
|
Actual Input
|
|
|
|
|
|
Direct Materials: Cedar
|
248,160
|
3.2 ft/unit
|
|
Direct Materials: Plastic
|
37,741
|
1.1 ft/unit
|
|
Direct Manufacturing: Labor ($)
|
332,760
|
.60 hr/unit
|
|
Variable Manufacturing Overhead
|
2,585
|
0.25 ft/unit
|
a) Classify all product and period costs appropriately.
b) Compute a cost-volume-profit analysis. What are the implications of this analysis?
c) Compute contribution margin per unit and contribution margin ratio.
d) Determine the breakeven quantity and the breakeven revenue accurately.
e) Determine if the company is breaking even. What are cost-volume-profit analysis implications on short-term planning?