协和学院国际教育学院财政预算reporet

Unit Title:Preparing Financial Forecast
Assessor Name:Lin Suhua
Submission Date:11.25.2014
Preparing Financial Forecast
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Word Count:700
1
Matteck plc Flexed Budget statement for December
Original Budget 5,000units
Flexed
Budget
5,000units
Actual
4,500units
Variance
££££F/A Direct Material180,000162,000160,0002,000F Direct Labour100,00090,00095,0005,000A Variable
Production
Overheads
50,00045,00047,5002,500A
Supervision
Costs
3,3003,3003,400100A
Rent and Rates1,0001,0001,200200A Administration
Overheads
2,0002,0002,100100A
Depreciation3,0003,0003,0000 Total306,300312,2005,900A
II.Calculate
(a).Direct Material Total:
(Budgeted Quantity×Budgeted Price)-(Actual Quantity×Actual Price)
=(4,500units×3kg per unit×£12per kg)-(16,000kg×£10per kg)
=£162,000-£160,000
=£2,000(F)
(b).Direct Material Usage
Budgeted Price×(Budgeted Quantity–Actual Quantity)
=£12per kg×(4,500units×3kg per units–16,000kg)
=£12per kg×(13,500kg-16,000kg)
=£30,000(A)
(c).Direct Material Price:
Actual Quantity×(Budgeted Price–Actual Price)
=16,000kg×(£12per kg-£160,000/16,000kg)
=16,000kg×(£12per kg-£10per kg)
=£32,000(F)
(d).Direct Labor Total:
(Budgeted Hours×Budgeted Rate)–(Actual Hours×Actual Rate)
=(4,500units×2.5hours×£8per hour)–(10,000×£95,000/10,000hours) =£90,000-£95,000
=£5,000(A)
(e)Direct Labor Rate:
Actual Hours×(Budgeted Rate−Actual Rate)
=10,000hours×(£8per hour-£95,000/10,000hours)
=10,000hours×£1.5per hour
=£15,000(A)
(f).Direct Labor Efficiency
Budgeted Rate×(Budgeted Hours-Actual Hours)
=£8per hours×(4,500units×2.5hours–10,000hours)
=£8per hours×(11,250hours-10,000hours)
=£8per hours×1,250hours
=£10,000(F)
(g).Total Overhead:
(Budgeted Variable Overhead+Budgeted Fixed Overhead)–(Actual Variable Overh ead+Actual Fixed Overhead)
=(£45,000+£3,300+£1,000+£2,000+£3,000)-(£47,500+£3,400+£1,200+£2,100+£3, 000)
=£54,300-£57,200
=£2,900(A)
3The material pay for variance is favourable,it means that actual cost is less than flexibled budget.The material cost variance is caused by material usage variance and material price variance.
Use material Matteck PCLS is at a disadvantage,may be due to mechanical problems or poor quality material.Matteck PCLS material price difference is good,may be due to the higher level of labor or higher quality materials.But also the labor rate variance in Matteck PCLS,it may be due to a lack of skilled Labour or higher grade workforce
Recommendation:they can buy cheaper price’s materials for production in the company,it also can be purchased relatively good mechanical equipment in the production process,it not only can improve production efficiency,but also it can reduce usage to avoid excessive waste of some materials.。