Analysis of Fixed and Variable Costs
Essay by people • February 20, 2011 • Case Study • 498 Words (2 Pages) • 2,458 Views
A. Analysis of Fixed and Variable Costs
Sales (units) 57024
Production (units) n 57024
FIXED COSTS/EXPENSES E
Marketing:
Salesmen's salaries 4444000
Salemen's training 299100
Advertising 1070000
Territory sales office rental 45000
Territory offices operating expenses 180000
Credit department 0
Home office 73125
Total - 6111225
General & Administrative:
Executive salaries 480000
Secretarial & clerical 180000
Supplies 15000
Depreciation, building 5000
Depreciation, furniture & fixtures 7500
Total - 687500
Manufacturing:
Fixed direct labor 1110000
Utilities 10500
Production planning & control 120000
Purchasing and receiving costs 447074
Factory insurance 12000
Depreciation, prod. equip. & tools 117500
Depreciation, building 20000
Factory supplies 10000
Factory workers training cost 42500
Total - 1889574
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Total fixed costs 8688299
=
VARIABLE COST/EXPENSES
Marketing: Amount Rate
Salesmen's commissions 2115207 37.09
Packaging 114048 2.00
Salesmen travel 392895 6.89
Bad debts 0 0.00
Credit department 0 0.00
- -
Total marketing 2622150 45.98 45.98
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General & Administrative:
Travel 179789 3.15
Supplies 57024 1.00
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Total general & admin. 57024 4.15 4.15
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Manufacturing:
Labor:
Cutting department 1393920 24.44
Assembling department 1393920 24.44
- -
Total labor 2787840 48.89
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Material:
Material X 2942938 51.61
Material Y 1824768 32.00
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Total material 4767706 83.61
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Variable overhead:
Utilities 42768 0.75
Repairs & maintenance 114048 2.00
Supplies 42768 0.75
Material spoilage loss 123840 2.17
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Total variable overhead 323424 5.67
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Total variable mfg. 7878970 138.17 138.17
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188.31
Total variable costs/expenses =
Material X Material Y
Beginning inventory 1940160 0
Purchases (net) 2972160 * 1920000
- -
4912320 1920000
Ending inventory 1969882 95232
- -
Materials used 2942438 1824768
= =
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