L1 Analysis 363

Actual Results Rates Actual

Units Produced 10800

Frame Assembly
Steel Tubing 3572100 31.5 per lb
Paint 28187 20.5 per gal
Labour 1528050 15.25 per hr
Total Frame 5128337

Wheel Assembly
Parts 1317600 122 per kit
Rework Parts 25000
Labour 74250 13.5 per hr
Total Wheel 1416850

Final assembly
Parts 3963600 367 per kit
Rework Parts 45000
Labour 116000 14.5 per hr
Total Assembly 4124600
Total Direct Cost 10669787
Over Head
Rent 250000
Office Staff 100000
Depreciation 100000
Other Costs
Fixed 250000
Variable 600000
Total OH 1300000

Total annual Cost 11969787

Static Budget Varience Static Budgeted Rates Budgeted Price Varience

800 F 10000

-272100 U 3300000 30 per lb 107163000

-3187 U 25000 20 per gal 687.5
-28050 U 1500000 15 hr 25050
-303337 U 4825000

-117600 U 1200000 120 per kit 21600

-25000 U
-9250 U 65000 13 per hr 2750
-151850 U 1265000

-463600 U 3500000 350 per kit 183600

-45000 U
-11000 U 105000 14 per hr 4000
-519600 U 3605000
-974787 U 9695000

0 250000
0 100000
0 100000

0 250000
-100000 U 500000
-100000 U 1200000

-1074787 U 10895000
 Shahzad:
Efficiency var= (Actual
qty of input used -
Efficiency Varience budgeted qty of input
allowed for actual output)
x budgeted price of input

102000
2500 Shahzad:
3000 Price var= (Actual price
of input - budgeted price
of input) x Actal Qty of
input

17280000

6500

293600

7000
L1 Analysis
3572100

Actual Results Rates Flexible Budget Varience

Units Produced 10800 0

Frame Assembly
Steel Tubing 3572100 31.5 per lb 8100 U
Paint 28187 30.5 per gal 687
Labour 1528050 15.25 per hr 25050
Total Frame 5128337 33837

Wheel Assembly
Parts 1317600 122 per kit 21600
Rework Parts 25000 25000
Labour 74250 13.5 per hr 2750
Total Wheel 1416850 49350

Final assembly
Parts 3963600 367 per kit 183600
Rework Parts 45000 45000
Labour 116000 14.5 per hr 4000
Total Assembly 4124600 232600

Over Head
Rent 250000 0
Office Staff 100000 0
Depreciation 100000 0
Other Costs
Fixed 250000 0
Variable 600000 0
Total OH 1300000 0

Total annual Cost 11969787 315787

Flexible Budget Sales Voleme Varience Static Budgeted Rates

10800 800 10000

3564000 264000 3300000 30 per lb

27500 2500 25000 20 per gal
1503000 3000 1500000 15 hr
5094500 269500 4825000

1296000 96000 1200000 120 per kit

0
71500 6500 65000 13 per hr
1367500 102500 1265000
0

3780000 280000 3500000 350 per kit

0
112000 7000 105000 14 per hr
3892000 287000 3605000

250000 0 250000
100000 0 100000
100000 0 100000

250000 0 250000
600000 100000 500000
1300000 100000 1200000

11654000 759000 10895000

L1 Analysis

Actual Results Rates Actual Unit Var Cost

Units Produced 10800

Frame Assembly
Steel Tubing 3572100 113400 31.5 per lb 330.8
Paint 28187 1375 20.5 per gal 2.6
Labour 1528050 100200 15.25 per hr 141.5
Total Frame 5128337

Wheel Assembly
Parts 1317600 10800 122 per kit 122.0
Rework Parts 25000
Labour 74250 5500 13.5 per hr 6.9
Total Wheel 1416850

Final assembly
Parts 3963600 10800 367 per kit 367.0
Rework Parts 45000
Labour 116000 8000 14.5 per hr 10.7
Total Assembly 4124600
Total Direct Cost 10669787
Over Head
Rent 250000
Office Staff 100000
Depreciation 100000
Other Costs
Fixed 250000
Variable 600000
Total OH 1300000

Total annual Cost 11969787

Static Budget Varience Static Budgeted Rates Budgeted Unit Var Cost

800 F 10000

-272100 U 3300000 110000 30 per lb 330

-3187 U 25000 1250 20 per gal 2.5
-28050 U 1500000 100000 15 hr 150
-303337 U 4825000

-117600 U 1200000 10000 120 per kit 120

-25000 U
-9250 U 65000 5000 13 per hr 6.5
-151850 U 1265000

-463600 U 3500000 10000 350 per kit 350

-45000 U
-11000 U 105000 7500 14 per hr 10.5
-519600 U 3605000
-974787 U 9695000

0 250000
0 100000
0 100000

0 250000
-100000 U 500000
-100000 U 1200000

-1074787 U 10895000
Price Varience Efficiency Varience
Shahzad:
Efficiency var= (Actual
qty of input used -
budgeted qty of input
allowed for actual
107163000 102000
output) x budgeted price
687.5 2500 of input
25050 3000

Shahzad:
Price var= (Actual price
21600 17280000 of input - budgeted price
of input) x Actal Qty of
input
2750 6500

183600 293600

4000 7000