材料全屏 McDreamy is in an industry sector which is recovering from the recent recession. The directors of the company hope next year to be operating at 85% of capacity, although currently the company is operating at only 65% of capacity. 65% of capacity represents output of 10,000 units of the single product which is produced and sold. One hundred direct workers are employed on production for 200,000 hours in the current year. 23 【论述题】 Prepare for next year a flexible budget statement on the assumption that the company operates at 85% of capacity; your statement should show both contribution and profit.
【参考答案及解析】
Flexible budget statement for next year operating at 85% capacity Workings 1 65% of capacity = 10,000 units ∴100% of capacity = 10,000 ÷ 0.65 = 15,385 units ∴ 85% of capacity = (10,000 ÷ 0.65) × 0.85 = 13,077 units ∴ 75% of capacity = 11,538 ∴ 55% of capacity = 8,462 2 Current direct material cost per unit = $1,000,000 ÷ 10,000 = $100 per unit ∴ Flexible budget allowance for next year = $100 × 1.06 × 13,077 = $1,386,162 3 Current direct wages cost per unit = $1,750,000 ÷ 10,000 = $175 per unit ∴ Flexible budget allowance for next year = $175 × 1.03 × 13,077 = $2,357,129 4 Production overhead increases by $53,830 for an increase in activity of (10,000 – 8,462) units ∴Variable production overhead per unit = $35 ∴Variable overhead allowance for 85% capacity = 13,077 × $35 = $457,695 Plus 7% increase $32,039 Total allowance $489,734 5 Selling overhead increases by $7,690 for an increase in activity of (10,000 – 8,462) units. ∴Variable cost per unit = $5 ∴Variable overhead allowance for 85% capacity = 13,077 × $5 = $65,385 Plus 7% increase $4,577 Total allowance $69,962 6 $ Total production overhead at 65% activity 650,000 Less variable overhead (10,000 × $35 (W4)) 350,000 Fixed overhead this year 300,000 Plus 10% increase 30,000 Total allowance 330,000 7 $ Total selling overhead at 65% activity 200,000 Less variable overhead (10,000 × $5 (W5)) 50,000 Fixed overhead this year 150,000 Plus 7.5% increase 11,250 Total allowance 161,250 8 Administration overhead = $120,000 × 1.1 = $132,000 9 The cost and selling price structure is as follows. % Sales price 100.00 Profit 16.67 Cost 83.33 ∴Profit as a percentage of cost = 16.67 / 83.33× 100% = 20% of cost $ Total cost ($4,302,987 + $623,250) 4,926,237 Profit at 20% of cost 985,247 ∴ Sales value 5,911,484
Flexible budget statement for next year operating at 85% capacity Workings 1 65% of capacity = 10,000 units ∴100% of capacity = 10,000 ÷ 0.65 = 15,385 units ∴ 85% of capacity = (10,000 ÷ 0.65) × 0.85 = 13,077 units ∴ 75% of capacity = 11,538 ∴ 55% of capacity = 8,462 2 Current direct material cost per unit = $1,000,000 ÷ 10,000 = $100 per unit ∴ Flexible budget allowance for next year = $100 × 1.06 × 13,077 = $1,386,162 3 Current direct wages cost per unit = $1,750,000 ÷ 10,000 = $175 per unit ∴ Flexible budget allowance for next year = $175 × 1.03 × 13,077 = $2,357,129 4 Production overhead increases by $53,830 for an increase in activity of (10,000 – 8,462) units ∴Variable production overhead per unit = $35 ∴Variable overhead allowance for 85% capacity = 13,077 × $35 = $457,695 Plus 7% increase $32,039 Total allowance $489,734 5 Selling overhead increases by $7,690 for an increase in activity of (10,000 – 8,462) units. ∴Variable cost per unit = $5 ∴Variable overhead allowance for 85% capacity = 13,077 × $5 = $65,385 Plus 7% increase $4,577 Total allowance $69,962 6 $ Total production overhead at 65% activity 650,000 Less variable overhead (10,000 × $35 (W4)) 350,000 Fixed overhead this year 300,000 Plus 10% increase 30,000 Total allowance 330,000 7 $ Total selling overhead at 65% activity 200,000 Less variable overhead (10,000 × $5 (W5)) 50,000 Fixed overhead this year 150,000 Plus 7.5% increase 11,250 Total allowance 161,250 8 Administration overhead = $120,000 × 1.1 = $132,000 9 The cost and selling price structure is as follows. % Sales price 100.00 Profit 16.67 Cost 83.33 ∴Profit as a percentage of cost = 16.67 / 83.33× 100% = 20% of cost $ Total cost ($4,302,987 + $623,250) 4,926,237 Profit at 20% of cost 985,247 ∴ Sales value 5,911,484