Colonial Cookies Final

8/4/2019 Colonial Cookies Final

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PREPARED BY:MUSA SYARIF LUBIS

ANDRY SATYAAHMAD AZMY

VINA CAHYA FARHANI

FAJAR RAMADHAN


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COMPANY PROFILEy Retail stores selling cookies (chocolate nut supreme)

y The president is Mr Justine Madison


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PROBLEM??y Prepare a new contribution report February:1. The Static Budget in contribution report2. The variance in the contribution report

y Total contribution margin in the f lexible budgety Interpret the meaning of total contribution margin in the

flexible budgety Calculate the total variance between the f lexible budget (direct

material-price variance, direct material quantity variance,direct labor rate variance, direct labor efficiency variance,

variable overhead spending and efficiency variance, sales pricevariance)

y Explain the problems in direct labour hoursy How might activity ABC solve this problem


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CONTRIBUTION MARGINy Static and variance report

Items Flexible Budget Actual

Units (in punds) 225,000$ 225,000$ -$ -Revenue 1,800,000$ 1,777,500$ (22,500)$ U

Direct Material 326,250$ 432,500$ 106,250$ U

Direct Labor 189,000$ 174,000$ (15,000)$ F

Variable Overhead 364,500$ 375,000$ 10,500$ U

Total variable costs 879,750$ 981,500$ 101,750$ UContribution Margin 920,250$ 796,000$ (124,250)$ U

Variance


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TOTAL CONTRIBUTION MARGINy Total contribution margin from the new report are in

the static budget of 920.250, 796.000 actual, and

variance -124.250y Based on the results has been calculated that the

contribution margin increases and variance decreases.This shows that the estimate is greater than actual

budgets so that the company suffered losses.Companies can not get bigger than the actual profit


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ACTUAL QUANTITY AND UNIT COSTCalculate actual quantity & unit cost

Cost Item Actual Cost lexible Cost Actual Quantity Actual Unit Cost

Direct aterialCookie ix 2,325,000 oz 46,500$ 46,500$ 10.33 0.02$

ilk Chocolate 1,330,000 oz 266,000$ 199,500$ 5.91 0.24$

Almonds 240,000 oz 120,000$ 120,000$ 1.07 0.533333333

Direct Labor - 0

ixing 225,000 min 54,000$ 54,000$ 1.00 14.40$

aking 400,000 min 120,000$ 120,000$ 1.78 16$

Variable Overhead 375,000$ 364,500$ 1.67 1.666666667

Total Variable Costs 981,500$ 904,500$ 4.362222222

Quantity


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TOTAL ARIANCECalculate the total variance

A

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( )

( )

( )

L f p

L

C

C

A

O


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THE PROBLEM DIRECT LABOUR

BASIS O ERHEADy If based at the problems that will arise is not efficient

in calculating the performance because production is

not necessarily produced in accordance with thestandardization of the company.

y It is difficult to determine the estimated budget.


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SOL E FROM ABC SYSTEMy Several costs are Identified.

y Counting the cost of overhead and fixed costs in

the calculation of working hours based onoverhead.

y More flexible in determining or changing the feestructure.


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THANK YOUALHAMDULILAH

Colonial Cookies Final

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