Price per unit: (Revenue/Unit)
Variable
cost per unit (Variable cost/unit)
Contribution
Margin (Price per unit-‐variable cost per unit)
$206.20
Break Even Point= (Fixed cost/Contribution margin) or 729/4.145
$202.06
$4.15
175.875 units
TOTAL COST VARIANCE ANALYSIS
Total
costs
Budget
Production Unit
Expected
cost per unit
$41,140,000
200,000
$205.70
Actual total cost
Actual
production unit
Actual
cost per unit
$38,148,000
180,000
211.91
FLASH MEMORY VARIANCE ANALYSIS
Direct Material Price Varience
(Actual
Price-‐Standard Price) x Actual Quantity
($29.16-‐$27)
x180,000
$388,800
U
DIRECT MATERIAL QUANTITY VARIANCE
(Actual
Quantity-‐Standard Quantity) x Actual Price
(180,000-‐200,000)
x $29.16
$540,000
F
TOTAL MATERIAL VARIANCE
(Price
Variance-‐Usage Variance)
$388,800 U-‐$540,000 F
$151,200
F
LABOR VARIANCE ANALYSIS
DIRECT
LABOR RATE VARIANCE
(Actual
Rate-‐Standard Rate) x Actual Hour (production)
($17.18-‐$13.11)
x 180,000
$732,600
DIRECT LABOR EFFICIENCY VARIANCE
(Actual
Hour-‐Standard Hour) x Standard Rate
(180,000-‐200,000)
x $13.11
$262,200
F
TOTAL
LABOR VARIANCE
(Labor
Variance-‐Efficiency Variance)
$732,600
U -‐ $262,200 F
$470,400
U
FIXED
OVER HEAD SPENDING VARIANCE
(Actual
Fixed Manufacturing Overhead-‐Standard Fixed Manufacturing Overhead)
$736,000-‐$729,000
$7,000 U
Preliminary Report August Operations
Revenue (transfer from Shenzhen)
Variable
cost
Materials
Flash memory
Application
process
Chips-‐phone
Gyroscope
8
other chips
Variable
supplies and tools
Subtotal
Labor
Assembly
and Packaging
Shipping
Total Variable costs
Fixed
costs
Factory
Rent
Machine
Depreciation
Utility
fee and taxes
Supervision
Total fixed costs
Total
costs
Net
income
