HND-财政预算.doc

The report of Preparing Financial Forecasts Name: Class: Date: 2010-6-10 Introduction Tricol plc makes a range of furniture and kitchenware and this report demonstrates that the Flexible budget of a product called ‘Zupper’ of Tricol in part A and give a Project evaluation of Tricol in part B. Part A Flex the budget figures as following. Tricol plc Flexible budget Original budget Flexed budget Actual results Variance A/F 2000 units 1600 units 1600 units Direct material ￡80000 ￡64000 ￡61600 ￡2400 F Direct labor ￡36000 ￡28800 ￡35200 ￡（6400） A Variable production overheads ￡4000 ￡3200 ￡3200 0 Fixed overheads Depreciation ￡1500 ￡1500 ￡1500 0 Rent and rate ￡2500 ￡2500 ￡2500 0 Administration overheads ￡2000 ￡2000 ￡2200 ￡（200） A Insurance cost ￡2200 ￡2200 ￡2400 ￡（200） A Total fixed overheads ￡8200 ￡8200 ￡8600 ￡（400） A Total cost of production ￡104200 ￡108600 ￡（4400） A Calculating the variances: DIRECT MATERIAL A TOTAL VARIANCE (STANDARD UNTIS OF ACTUAL PRODUCTION*STANDARD PRICE)- (ACTUAL QUANTITY *ACTUAL PRICE) (4kgs * 1,600)* ￡10 –￡ 61,600 =6,400kgs * ￡10 –￡ 61,600 =￡64,000 - ￡61,600 =￡2,400 (F) 2. DIRECT MATERIAL A PRICE VARIANCE ACTUAL QUANTUTY*(STANDARD PRICE-ACTUAL PRICE) 5,600kgs * [￡10-(￡61,600/5,600kg)] =5,600* (￡10- ￡11) =5,600*￡1 =￡5,600(A) DIRECT MATERIAL A USAGE VARIANCE STANDARD PRICE*(STANDARD UNITS OF ACTUAL PRODUCTION-ACTUAL UNITS) ￡10*[(4kgs * 1,600) - 5,600] =￡10*(6,400-5,600) =￡10*800 =￡8,000(F) Note: When adding the price and usage variances the result must equal the total variance. Therefore, ￡5,600(A)(PRICE)+ ￡8,000(F)(USAGE)= ￡2,400 (F)(TOTAL). DIRECT LABOUR TOTAL VARIANCE (STANDARD HOURS OF ACTUAL PRODUCTION*STANDARD RATE ph)- (ACTUAL HOURS*ACTUAL RATE ph) [(2hrs * 1,600)* ￡9]- [3520hrs*(￡35,200/3,520hrs)] = (3,200*￡9)- ￡3,5200 =￡28,800-￡3,5200 =￡6,400(A) DIRECT LABOUR RATE VARIANCE ACTUAL