Danshui Sheet2
BREAK EVEN POINT ANALYSIS
Production
Units
200
Revenue
Variable
cost
Fixed
cost
$41,240
$40,411
729
Price per unit: (Revenue/Unit)
Variable
cost per unit (Variable cost/unit)
Contribution
Margin (Price per unit-‐variable cost per unit)
$206.20
Break Even Point= (Fixed cost/Contribution margin) or 729/4.145
$202.06
$4.15
175.875 units
TOTAL COST VARIANCE ANALYSIS
Total
costs
Budget
Production Unit
Expected
cost per unit
$41,140,000
200,000
$205.70
Actual total cost
Actual
production unit
Actual
cost per unit
$38,148,000
180,000
211.91
FLASH MEMORY VARIANCE ANALYSIS
Direct Material Price Varience
(Actual
Price-‐Standard Price) x Actual Quantity
($29.16-‐$27)
x180,000
$388,800
U
DIRECT MATERIAL QUANTITY VARIANCE
(Actual
Quantity-‐Standard Quantity) x Actual Price
(180,000-‐200,000)
x $29.16
$540,000
F
TOTAL MATERIAL VARIANCE
(Price
Variance-‐Usage Variance)
$388,800 U-‐$540,000 F
$151,200
F
LABOR VARIANCE ANALYSIS
DIRECT
LABOR RATE VARIANCE
(Actual
Rate-‐Standard Rate) x Actual Hour (production)
($17.18-‐$13.11)
x 180,000
$732,600
DIRECT LABOR EFFICIENCY VARIANCE
(Actual
Hour-‐Standard Hour) x Standard Rate
(180,000-‐200,000)
x $13.11
$262,200
F
TOTAL
LABOR VARIANCE
(Labor
Variance-‐Efficiency Variance)
$732,600
U -‐ $262,200 F
$470,400
U
FIXED
OVER HEAD SPENDING VARIANCE
(Actual
Fixed Manufacturing Overhead-‐Standard Fixed Manufacturing Overhead)
$736,000-‐$729,000
$7,000 U
Preliminary Report August Operations
Revenue (transfer from Shenzhen)
Variable
cost
Materials
Flash memory
Application
process
Chips-‐phone
Gyroscope
8
Production
Units
200
Revenue
Variable
cost
Fixed
cost
$41,240
$40,411
729
Price per unit: (Revenue/Unit)
Variable
cost per unit (Variable cost/unit)
Contribution
Margin (Price per unit-‐variable cost per unit)
$206.20
Break Even Point= (Fixed cost/Contribution margin) or 729/4.145
$202.06
$4.15
175.875 units
TOTAL COST VARIANCE ANALYSIS
Total
costs
Budget
Production Unit
Expected
cost per unit
$41,140,000
200,000
$205.70
Actual total cost
Actual
production unit
Actual
cost per unit
$38,148,000
180,000
211.91
FLASH MEMORY VARIANCE ANALYSIS
Direct Material Price Varience
(Actual
Price-‐Standard Price) x Actual Quantity
($29.16-‐$27)
x180,000
$388,800
U
DIRECT MATERIAL QUANTITY VARIANCE
(Actual
Quantity-‐Standard Quantity) x Actual Price
(180,000-‐200,000)
x $29.16
$540,000
F
TOTAL MATERIAL VARIANCE
(Price
Variance-‐Usage Variance)
$388,800 U-‐$540,000 F
$151,200
F
LABOR VARIANCE ANALYSIS
DIRECT
LABOR RATE VARIANCE
(Actual
Rate-‐Standard Rate) x Actual Hour (production)
($17.18-‐$13.11)
x 180,000
$732,600
DIRECT LABOR EFFICIENCY VARIANCE
(Actual
Hour-‐Standard Hour) x Standard Rate
(180,000-‐200,000)
x $13.11
$262,200
F
TOTAL
LABOR VARIANCE
(Labor
Variance-‐Efficiency Variance)
$732,600
U -‐ $262,200 F
$470,400
U
FIXED
OVER HEAD SPENDING VARIANCE
(Actual
Fixed Manufacturing Overhead-‐Standard Fixed Manufacturing Overhead)
$736,000-‐$729,000
$7,000 U
Preliminary Report August Operations
Revenue (transfer from Shenzhen)
Variable
cost
Materials
Flash memory
Application
process
Chips-‐phone
Gyroscope
8