Danshui Sheet2

BREAK EVEN POINT ANALYSIS
Production
Units

200

Revenue
Variable
cost
Fixed
cost

$41,240
$40,411
729

Price per unit: (Revenue/Unit)
Variable
cost per unit (Variable cost/unit)
Contribution
Margin (Price per unit-­‐variable cost per unit)

$206.20

Break Even Point= (Fixed cost/Contribution margin) or 729/4.145

$202.06
$4.15

175.875 units

TOTAL COST VARIANCE ANALYSIS
Total
costs
Budget
Production Unit
Expected
cost per unit

$41,140,000
200,000
$205.70

Actual total cost
Actual
production unit
Actual
cost per unit

$38,148,000
180,000
211.91

FLASH MEMORY VARIANCE ANALYSIS

Direct Material Price Varience
(Actual
Price-­‐Standard Price) x Actual Quantity
($29.16-­‐$27)
x180,000
$388,800
U

DIRECT MATERIAL QUANTITY VARIANCE
(Actual
Quantity-­‐Standard Quantity) x Actual Price
(180,000-­‐200,000)
x $29.16
$540,000
F

TOTAL MATERIAL VARIANCE
(Price
Variance-­‐Usage Variance)

$388,800 U-­‐$540,000 F
$151,200
F

LABOR VARIANCE ANALYSIS
DIRECT
LABOR RATE VARIANCE
(Actual
Rate-­‐Standard Rate) x Actual Hour (production)
($17.18-­‐$13.11)
x 180,000
$732,600

DIRECT LABOR EFFICIENCY VARIANCE
(Actual
Hour-­‐Standard Hour) x Standard Rate
(180,000-­‐200,000)
x $13.11
$262,200
F
TOTAL
LABOR VARIANCE
(Labor
Variance-­‐Efficiency Variance)
$732,600
U -­‐ $262,200 F
$470,400
U
FIXED
OVER HEAD SPENDING VARIANCE
(Actual
Fixed Manufacturing Overhead-­‐Standard Fixed Manufacturing Overhead)
$736,000-­‐$729,000
$7,000 U

Preliminary Report August Operations

Revenue (transfer from Shenzhen)
Variable
cost
Materials
Flash memory
Application
process
Chips-­‐phone
Gyroscope
8