Course ACCY 302 Activity Individual Case 2 Case Danshui Plant No. 2 Exhibit 1 St
ID: 2611058 • Letter: C
Question
Course ACCY 302 Activity Individual Case 2 Case Danshui Plant No. 2 Exhibit 1 Standard Variable Costs for iPhone 4 (U.S. Dollars) 9 Bill of materials (per unit) 10 Purchased chips 12 13 14 15 16 17 Flash memory (Samsung) Application processor (Samsung) Chip for phone calls (Infinion) Gyroscope (STMMicroelectronics) 8 other purchased chips Variable supplies and tools 18 19 Labor 20 Assembly and packaging (per unit) 21 Shipping (per unit) 23 24 25 26 27 28 29Monthly fixed costs Exhibit 2 Budgeted Fixed Overhead per Month Factory rent Machine depreciation Utility fee and local taxes Supervision 30Explanation / Answer
Rate Per Unit Original Budget 200,000 Units Actual - 180,000 Units Variance - 20,000 Units Flexible Budget - 180,000 Units Actual - 180,000 Units Variance Revenue 206.20 41,240,000.00 37,476,000.00 3,764,000.00 (U) 37,116,000.00 37,476,000.00 360,000.00 (F) Variable Costs: Materials Flash Memory (Samsung) 27.00 5,400,000.00 5,249,000.00 151,000.00 (F) 4,860,000.00 5,249,000.00 389,000.00 (U) Application Processor (Samsung) 10.75 2,150,000.00 1,935,000.00 215,000.00 (F) 1,935,000.00 1,935,000.00 - Chip for Phone Calls (Infinion) 14.05 2,810,000.00 2,529,000.00 281,000.00 (F) 2,529,000.00 2,529,000.00 - Gyroscope (STMMicroelectronics) 2.60 520,000.00 468,000.00 52,000.00 (F) 468,000.00 468,000.00 - 8 Other purchased Chips 70.95 14,190,000.00 12,643,000.00 1,547,000.00 (F) 12,771,000.00 12,643,000.00 128,000.00 (F) Variable Supplies & Tools 62.54 12,507,000.00 11,305,000.00 1,202,000.00 (F) 11,256,300.00 11,305,000.00 48,700.00 (U) Sub-Total 187.89 37,577,000.00 34,129,000.00 3,448,000.00 (F) 33,819,300.00 34,129,000.00 309,700.00 (U) Labor: Assembly and Packing 13.11 2,622,000.00 3,092,000.00 470,000.00 (U) 2,359,800.00 3,092,000.00 732,200.00 (U) Shipping 1.06 212,000.00 191,000.00 21,000.00 (F) 190,800.00 191,000.00 200.00 (U) Total Variable Costs 202.06 40,411,000.00 37,412,000.00 2,999,000.00 (F) 36,369,900.00 37,412,000.00 1,042,100.00 (U) Fixed Costs: Factory Rent 400,000.00 400,000.00 - 400,000.00 400,000.00 - Machine Depreciation 150,000.00 150,000.00 - 150,000.00 150,000.00 - Utility Fees and Local Taxes 52,000.00 52,000.00 - 52,000.00 52,000.00 - Supervision 127,000.00 134,000.00 7,000.00 (U) 127,000.00 134,000.00 7,000.00 (U) Total Fixed Costs 729,000.00 736,000.00 7,000.00 (U) 729,000.00 736,000.00 7,000.00 (U) Total Costs 41,140,000.00 38,148,000.00 2,992,000.00 (F) 37,098,900.00 38,148,000.00 1,049,100.00 (U) Net Income 100,000.00 (672,000.00) 772,000.00 (U) 17,100.00 (672,000.00) 689,100.00 (U)