ACN 405.pdf - Independent University Bangladesh Assignment Cost Accounting Submitted to Md Safiuddin Semester Autumn 2016 Section-1 Date of submission

# ACN 405.pdf - Independent University Bangladesh Assignment...

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Page 1of 12Independent University Bangladesh Assignment Cost Accounting Submitted to: Md. SafiuddinSemester- Autumn 2016 Section -1 Date of submission- 07/11/2016
Page 2of 12Table of Content Topic Page no Introduction 03 Data Analysis 03 Breakeven sales for Apple iPhone 4 04-05 Cost per unit and the actual cost. 06-07 flexible budget 07-08 Estimate material price and usage for flash memories, labor rate and usage 09-10 Strategies or decisions 11 Conclusion 12
Page 3of 12Introduction Danshui Plant No. 2 is a contract manufacturer that assembled electronic product. In high expectation of demand for iPhone 4, Apple had contracted with Danshui to assemble 2.4 million iPhone with a 12 month period. Wentao Chen, manager of Danshui was anxious upon reviewing the monthly operation’s performance for August as in the third month of the contract, production was only 1, 80,000 units. Date analysis Break-even point analysis Actual cost for august Total cost variance analysis Material price, labor rate and variances for august Strategies or decisions
Page 4of 12Solution 1 Using Budget Data, estimate the breakeven sales for Apple iPhone 4 Calculation Total Variable Cost Material cost Labor Cost Shipping Cost 187.89 13.11 1.06 Total Variable cost 202.06 Per Unit Calculation Total Fixed cost Factory rent Machine Depreciation Utility fees and taxes Supervision 4,00,000 150000 52000 127000 Total Fixed cost 729,000 Per Month Calculation price per unit Formula= (Revenue/Total units produced) Revenue 41,240,000 Unit 2,00,000 Price per unit 206.20
Page 5of 12Contribution margin Formula= (Price per unit variable cost per unit) Price per unit 206.20 Variable cost per unit 202.06 Contribution margin 4.14 per unit Break even Formula= (Fixed Cost / Contribution margin) Fixed Cost 729,000 Contribution margin 4.14 Break even 176,086.95 unit 176,086.95 Or 176,087 Apple iPhone 4’swould have to have been completed for Danshui Plant No.2 to break even.
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