Submitted by: Submitted by webward3
Views: 10
Words: 873
Pages: 4
Category: Business and Industry
Date Submitted: 09/05/2015 07:30 PM
Mile High Cycles
The following are the tables used to solve the problem.
Budgeted Costs | | | | | | | | | | |
| | | | | | | | | | |
Frame Assembly | | | | | | | Budgeted | Actual | Variance | |
Steel tubing | ($3,300,000/10,000)*10,800 = $3,564,000 | | | $3,564,000 | $3,572,100 | $8,100 | U |
Paint | ($25,000/10,000)*10,800 = $27,000 | | | | $27,000 | $28,187 | $1,187 | U |
Labor | ($1,500,000/10,000)*10,800 = $1,620,000 | | | $1,620,000 | $1,528,050 | -$91,950 | F |
Total frame | ($4,825,000/10,000)*10,800 = $5,211,000 | | | $5,211,000 | $5,128,337 | -$82,663 | F |
| | | | | | | | | | |
Wheel assembly | | | | | | | | | | |
Parts | ($1,200,000/10,000)*10,800 = $1,296,000 | | | $1,296,000 | $1,317,600 | $21,600 | U |
Rework parts | | | | | | | $0 | $25,000 | $25,000 | U |
Labor | ($65,000/10,000)*10,800 = $70,200 | | | | $70,200 | $74,250 | $4,050 | U |
Total wheel | ($1,265,000/10,000)*10,800 = $1,366,200 | | | $1,366,200 | $1,416,850 | $50,650 | U |
| | | | | | | | | | |
Final assembly | | | | | | | | | | |
Parts | ($3,500,000/10,000)*10,800 = $3,780,000 | | | $3,780,000 | $3,963,600 | $183,600 | U |
Rework parts | | | | | | | $0 | $45,000 | $45,000 | U |
Labor | ($105,000/10,000)*10,800 = $113,400 | | | $113,400 | $116,000 | $2,600 | U |
Total final assembly | ($3,605,000/10,000)*10,800 = $3,893,400 | | | $3,893,400 | $4,124,600 | $231,200 | U |
| | | | | | | | | | |
Overhead costs | | | | | | | | | | |
Rent | $250,000 | | | | | | $250,000 | $250,000 | $0 | - |
Office staff | $100,000 | | | | | | $100,000 | $100,000 | $0 | - |
Depreciation | $100,000 | | | | | | $100,000 | $100,000 | $0 | - |
Variable Overhead | [((2/3)*$750,000)/10,000]*10,800 = $540,000 | | | $540,000 | $600,000 | $60,000 | U |
Fixed Overhead | (1/3)*$750,000 = $250,000 | | | |...