HND SQA 财政预算outcome3 答案

Introduction This report shows the variances of direct material total usage price direct labor total rate efficiency and total overhead by a table and of flexed budget And also give the recommendation and conclusion Flex budget Tricol Plc Flexed Budget For June 2008 Original Budget 2 000 units Flexed Budget 1 600 units Actual Results 1 600 units Variance F A Direct materials 80 00064 00061 6002 400F Direct Labor 36 00028 80035 2006 400A Variable overheads4 0003 2003 2000 Insurance2 2002 2002 400200A Depreciation1 5001 5001 5000 Rent and Rates2 5002 5002 5000 Administration 2 0002 0002 200200A Total 128 200 104 200108 600 4 400A Variances analysis The direct material usage variance is 8000 F it shows that the flexed budget is 8 000 more than the actual cost as a result of the using of higher grade materials and changing of the way of production The direct material price variance is 5600 A which means that the actual price is 5600 more than the flexed budget price because of the Tricol PLC had changed their supplier and purchase the higher grade material lead to the price raised from 10 per kg to 11 per kg The direct material total direct material usage direct material price As calculated above 8000 5600 2400 the direct material total variance is 2400 The direct labor rate variance is 3520 A which means that the actual labor rate is 3520 more than the flexed budget caused by the company supplied a higher than expected wage the labor cost raised from 9 per hour to 10 per hour and may because Some employees still apprentices with poor efficiency The direct labor efficiency variance is 2880 A as to say the actual labor efficiency is 2880 more than flexed budget efficiency It may be because the machine on the production line equipment getting old and it influence the efficiency of employees at the time of production or maybe the culture of the company is not so well at current time which result in reduced efficiency The direct labor total variance is 6400 A caused by the labor rate variance and efficiency variance It shows that the actual total labor is 6400 more than the flexed budget total labor The total overhead variance is 400 A that means the actual total overhead is 400 more than flexed budget which caused by the changing of administration overhead and insurance cost both These two things may change by the company change the salary of the management and they may add extra insurances for the employees or the machinery Conclusion There is a policy of the company in which the company applies a rate of significance of 3 for any Variance analysis According to the data above we can clearly see that all the actual variances are higher than 3 it may caused by the actual production for June was 80 of the target amount and there are some respects had been changed in the factory Recommendation I d give some advices to Tricol Plc for improving their business To improve the efficiency not only by increase the salary but also change the way of production The company may discuss with the new supplier to lower raw material prices Training a group of experienced staff Appendix 1 Direct material total variance Standard units of actual production standard price actual quantity actual price 10 4 1600 61600 2 400 F 2400 64000 3 75 2 Direct material usage variance Standard price standard units of actual production actual units 10 4 1600 5600 8 000 F 8000 64000 12 5 3 Direct material price variance Actual quantity standard price actual price 5600 10 11 5 600 A 5600 64000 8 75 4 Direct labor total variance Standard hours of actual production standard rate ph actual hours actual rate ph 2 1600 9 35 200 6400 A 6400 28800 22 22 5 Direct labor efficiency variance Standard rate ph standard hours of actual production actual hours 9 1 600 2 3 520 2880 A 2880 28800 10 6 Direct labor rate variance Actual hours standard