HND-财政预算报告

1、Until Title:Preparing Financial Forecasts Candidate Name:Class: SCN: Date of submission: 25 June 2010Part A1.Flexible budget figuresFixed Budget 2000 Units Flexed Budget 1600 Units Actual 1600 Units Variance ££££A/F Direct Material 8000064000616002400FDirect Labour 36000288003520

2、06400AOverheads Variable Overheads Production 400032003200-Fixed Overheads Depreciation 150015001500-Insurance 220022002400200ARent and Rates 250025002500-Administration 200020002200200A2.Calculate the following variancesVariance: the difference between actual and budgeted cost, F=favorable, A=adver

3、se (a) Direct Material Total:(Budgeted Quantity × Budgeted Price) (Actual Quantity × Actual Price)£64000 £61600= £2400 FSignificance level = 2400/64000 = 3.75%(b) Direct Material Usage:Budgeted Price × (Budgeted Quantity Actual Quantity)£10 × (4kg × 1600

4、5600kg)= £10 × (6400 5600)= £8000F(c) Direct Material Price:Actual Quantity × (Budgeted Price Actual Price)5600 kg × (£10 £11) = £5600 A(d) Direct Labor Total:(Budgeted hours × Budgeted Rate) (Actual hours × Actual Rate)£2,8800 £3,5200=

5、3;6400 ASignificance level = 6400 / 28800 =22.22%(e) Direct Labor Rate:Actual Hours × (Budgeted Rate Actual Rate)3520 hours × (£9 £10)=£3520 A(f) Direct Labor Efficiency:Budgeted Rate × (Budgeted hours Actual hours)£9 × (3200hours 3520 hours)=£2880 A(g) T

6、otal Overhead:(Budgeted Variable Overhead + Budgeted Fixed Overhead) (Actual VariableOverhead + Actual Fixed Overhead)(£3200 + £8,200) (£3200 + £8,600) = £400 ASignificance level = 4000 / 85200 = 4.69%Insurance: 2200 2400 = 200 AAdministration : 2000 2200 = 200 A3. Reasons f

7、or variance3.1 Direct Material TotalAccording to the calculation variance, we can get the information that all the variance are over 3%, and the total cost of production had an advise variance, it has increases by 4,2%. So we think that the direct labor cost, insurance and administration cost increa

8、se is due to the increase in total production cost, And there are the details of the analysis of these variances.The cost of raw materialsIn the table above, we know that the cost of raw materials is lower than the budget, it is a positive change. And the reasons, perhaps:The modernization of produc

9、tion machines probably saved resources and less use of equipment.The company recently with top quality material.The real price rose, the price variation of the matter is unfavorable, the reason may be that the cost of high quality material is more than ever. The company changed suppliers, and has a

10、loss of discount. But the variation in the use of equipment and focused on the variation in commodity prices.3.2 Direct Labor TotalIn the labor cost is the cost of the work and effort. Labor costs are usually referred to as the hourly wage. If the real exchange rates vary over time in the form of st

11、andard rate, it will create all that is positive or negative differences. The effort, known as the reporting of energy efficiency. So when the real time that is indicated by standard time in the labor market more efficient. On the other hand, if the actual time that the rules, work is ineffectual.We

12、 can see that labor costs was much greater than the budget (£ 6,400), work efficiency and rates of change are all negative. The increased costs may be caused by the following reasons:The use of less labor, the work may be a lack of experience in their work.Company has recently estimated that mo

13、re than one salary - expected. But it can not increase efficiency of the workforce.Decrease in the efficiency of the workforce, the work must devote considerable time to complete the job is the same amount of work, so the need for overtime.3.3 Overhead VarianceInsurance costsThe insurance costs rose

14、 (£ 2,200 to £ 2,400). The reason may be caused by the new machine because the machine needs new insurance.administration costsThe overhead costs increased to (£ 2,000 to £ 22,00), the reason may be that the company has acquired the rates fixed office grows.4.ConclusionsMaterials

15、, labor and overhead, they all have more than 3% of its levels. So they need in their ministries analysis of variance.Employing the quality of the workforce to improve efficiency at work, trying to find suppliers who can provide high quality equipment at lower prices or discounts the company. With t

16、he increase of the salary guide work to improve the participation rate, instead of scheduling overtime at random.I think the above suggestions can improve the quality of production, and will bring more benefits to society.We provide some possible reasons and ways to improve, but I still hope that th

17、e emphasis of management in labor issues, research the real reason.Part B1.Assumptions1. The initial investment will be made in cash at the beginning of the project.2. expected revenue is the same as the net cash flows in the future.3. The residual value of assets is ignored.4. The discount rate is

18、not loaded during the project period.2.InformationInitial investmentCost ()Motor Vehicles£100,000Land £600,000Loading Unit£300,000Total £1000,000The expected revenue from the investment over the next five years as follow:Year 12345160,000160,000320,000320,000320,000Year Annul net

19、 cash flowCumulative cash flow0(1000,000)(1000,000)1160,000(840,000)2160,000(680,000)3320,000(360,000)4320,000(40,000)5320,000280,000The discount rate is 10%, so the payback period is 4 years and 1.5 months.3.Calculation the NPVYear PV factor at 10%Cash Flow PV NPV££££01(1,000,00

20、0)(1,000,000)(1,000,000)10.909160,000 145,440 (854,560)20.826160,000 132,160 (722,400)30.751320,000 240,320 (482,080)40.683320,000 218,560 (263,520)50.621320,000 198,720 (64,800)NPV=-64,800If NPV> 0 means that the investment would add value to the company, the project can be accepted.If NPV <0, means that the investment would be deducted from the value of the company, the project should be rejected.If NPV = 0, this means that the investment would neither gain nor loss of business value, then we should be indifferent to the decisio