Handout 3 ma problem 1
- 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/=