chapter 7 lecture notes

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Unformatted text preview: on Cost per lot Total plasKc cost 425 410 520 650 2,005 $500 $500 $500 $500 $500 $212,500 $205,000 $260,000 $325,000 $1,002,500 Boxes for packaging Lots to be used in producKon Cost per lot Total packing cost 425 410 520 650 2,005 $400 $400 $400 $400 $400 $170,000 $164,000 $208,000 $260,000 $802,000 Lots from Production Budget Cost from Purchasing Manager Preparing a Master Budget – Step 3 – Input Resources – Materials Summary Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total BuildIT Total plasKc cost Total dye cost Total packing cost $945,000 $930,000 $1,260,000 $1,674,000 $4,809,000 $787,500 $775,000 $1,050,000 $1,395,000 $4,007,500 $630,000 $620,000 $840,000 $1,116,000 $3,206,000 BuildIT- PLUS Total plasKc cost Total dye cost Total packing cost $425,000 $410,000 $520,000 $650,000 $2,005,000 $212,500 $205,000 $260,000 $325,000 $1,002,500 $170,000 $164,000 $208,000 $260,000 $802,000 Total cost of direct matls to be used $3,170,000 $3,104,000 $4,138,000 $5,420,000 $15,832,000 Lots from Production Budget Cost from Purchasing Manager Preparing a Master Budget – Amarillo Toys – Direct Labor Info Requires Production and HR mgrs to coordinate BuildIT 8 hours per lot BuildIT- PLUS 12 hours per lot Average labor costs $15.00 per hour Our example is simple – normally need to consider pay changes, overtime, changes to staff levels Preparing a Master Budget – Step 4 – Input Resources - Labor Quarter 1 Quarter 2 Quarter 3 Quarter 4 BuildIT Lots to be produced Labor hours per lot Labor cost per lot Direct labor cost Total 1,575 1,550 2,100 2,790 8,015 8 8 8 8 8 $15.00 $15.00 $15.00 $15.00 $15.00 $189,000 $186,000 $252,000 $334,800 $961,800 BuildIT- PLUS Lo...
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This document was uploaded on 04/01/2014.

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