Cost Accounting Exercise Instructions: Part 1: You receive a...

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Cost Accounting Exercise Instructions: Part 1: You receive an email from a plant supervisor that states that the total labor hours shown on the production report do not match the total labor hours recorded in the payroll system for the DSI department for week ending 10/10/15. You have a copy of the transaction detail recorded in the production system on the Data Set 1 tab. You also have a copy of the detail from the payroll system on the Data Set 2 tab. A cross-reference table is included on a separate tab. How many hours are off between the production report and the payroll system for the DSI department for WE 10/10/15? What are some possible reasons why there is a discrepancy in the labor hours between what was recorded in the production report and the payroll system? What might your next actions be in this scenario after you determine the variance? Part 2: On the actual data tab, you have some information extracted from the production system for January. The standard cost model tab shows a breakdown of how the standard cost of Product A was derived from budget data. What is the total average actual cost per finished pound of Product A in January? Based on the difference between the actual cost per lb and the standard cost per lb, is the plant's manufacturing performance on Product A favorable or unfavorable in January? Explain why. Optional Challenge Questions: The Operations Manager would like for you to determine the performance of Product A in January with consideration of the variances between actual and standard (such as yield variance and throughput variance). What performance areas should the Operations Manager focus his attention? Be sure to show your calculations or formulas in the cells. Production Date 5.10.2015 5.10.2015 5.10.2015 5.10.2015 5.10.2015 5.10.2015 5.10.2015 5.10.2015 5.10.2015 5.10.2015 6.10.2015 6.10.2015 6.10.2015 6.10.2015 6.10.2015 6.10.2015 6.10.2015 6.10.2015 6.10.2015 6.10.2015 6.10.2015 6.10.2015 6.10.2015 6.10.2015 6.10.2015 6.10.2015 6.10.2015 6.10.2015 6.10.2015 6.10.2015 6.10.2015 6.10.2015 Production Shift Order # 1 144046152 1 144046152 1 144046152 1 144046152 1 144046152 1 144046165 1 144046165 1 144046165 1 144046165 1 144046165 1 144046176 1 144046176 1 144046176 1 144046176 1 144046176 1 144046176 1 144046176 1 144046176 1 144046176 1 144046176 1 144046176 1 144046176 1 144046176 1 144046176 1 144046176 1 144046176 1 144046176 1 144046176 1 144046176 1 144046176 1 144046176 1 144046176 Output Department Product Code Hours Type Actual Time (Hrs) 5,2 117,93 0 0 0,23 2,05 8,45 245,85 0 0 4,27 0 106,7 0 0 0 0 0 0 0 0 0 0 0,23 0 0 0 0 0 0 0 0 DSI 108491 DSI 108491 DSI 108491 DSI 108491 DSI 108491 DSI 100562 DSI 100562 DSI 100562 DSI 100562 DSI 100562 DSI 100562 DSI 100562 DSI 100562 DSI 100562 DSI 100562 DSI 100562 DSI 100562 DSI 100562 DSI 100562 DSI 100562 DSI 100562 DSI 100562 DSI 100562 DSI 100562 DSI 100562 DSI 100562 DSI 100562 DSI 100562 DSI 100562 DSI 100562 DSI 100562 DSI 100562 Machine (Line Hrs) Labor (Man Hrs) Labor (Man Hrs) Labor (Man Hrs) Machine (Line Hrs) Machine (Line Hrs) Machine (Line Hrs) Labor (Man Hrs) Labor (Man Hrs) Labor (Man Hrs) Machine (Line Hrs) Machine (Line Hrs) Labor (Man Hrs) Labor (Man Hrs) Machine (Line Hrs) Machine (Line Hrs) Labor (Man Hrs) Machine (Line Hrs) Machine (Line Hrs) Labor (Man Hrs) Machine (Line Hrs) Machine (Line Hrs) Labor (Man Hrs) Machine (Line Hrs) Machine (Line Hrs) Machine (Line Hrs) Machine (Line Hrs) Labor (Man Hrs) Labor (Man Hrs) Machine (Line Hrs) Machine (Line Hrs) Labor (Man Hrs) 6.10.2015 6.10.2015 6.10.2015 6.10.2015 6.10.2015 6.10.2015 6.10.2015 6.10.2015 6.10.2015 6.10.2015 6.10.2015 6.10.2015 6.10.2015 6.10.2015 6.10.2015 7.10.2015 7.10.2015 7.10.2015 7.10.2015 7.10.2015 7.10.2015 7.10.2015 7.10.2015 7.10.2015 7.10.2015 7.10.2015 7.10.2015 7.10.2015 7.10.2015 7.10.2015 7.10.2015 7.10.2015 7.10.2015 7.10.2015 7.10.2015 1 144046176 DSI 1 144046176 DSI 1 144046176 DSI 1 144046176 DSI 1 144046176 DSI 1 144046176 DSI 1 144046176 DSI 1 144046176 DSI 1 144046176 DSI 1 144046176 DSI 1 144046177 DSI 1 144046177 DSI 1 144046177 DSI 1 144046177 DSI 1 144046177 DSI 1 144046186 DSI 1 144046186 DSI 1 144046186 DSI 1 144046186 DSI 1 144046186 DSI 1 144046186 DSI 1 144046186 DSI 1 144046186 DSI 1 144046186 DSI 1 144046186 DSI 1 144046186 DSI 1 144046186 DSI 1 144046186 DSI 1 144046186 DSI 1 144046186 DSI 1 144046186 DSI 1 144046186 DSI 1 144046186 DSI 1 144046186 DSI 1 144046186 DSI 100562 Machine (Line Hrs) 0 100562 Machine (Line Hrs) 0 100562 Labor (Man Hrs) 0 100562 Machine (Line Hrs) 0 100562 Machine (Line Hrs) 0 100562 Labor (Man Hrs) 0 100562 Machine (Line Hrs) 0 100562 Machine (Line Hrs) 0 104594 Machine (Line Hrs) 0 104594 Labor (Man Hrs) 0 105745 Machine (Line Hrs) 3,13 105745 Machine (Line Hrs) 8,08 105745 Labor (Man Hrs) 105745 Labor (Man Hrs) 0 105745 Labor (Man Hrs) 0 100522 Machine (Line Hrs) 0 100522 Machine (Line Hrs) 0 100522 Labor (Man Hrs) 0 100522 Labor (Man Hrs) 0 100522 Machine (Line Hrs) 0 100522 Machine (Line Hrs) 0 100522 Labor (Man Hrs) 0 100522 Machine (Line Hrs) 0 100522 Machine (Line Hrs) 0 100522 Labor (Man Hrs) 0 100522 Machine (Line Hrs) 0 100522 Machine (Line Hrs) 0 100522 Labor (Man Hrs) 0 100522 Machine (Line Hrs) 0 100522 Machine (Line Hrs) 0 100522 Machine (Line Hrs) 7,52 100522 Machine (Line Hrs) 2,5 100522 Labor (Man Hrs) 100522 Labor (Man Hrs) 0 100522 Machine (Line Hrs) 0 277,55 244,56 7.10.2015 7.10.2015 7.10.2015 7.10.2015 7.10.2015 7.10.2015 7.10.2015 7.10.2015 7.10.2015 7.10.2015 7.10.2015 7.10.2015 7.10.2015 7.10.2015 7.10.2015 7.10.2015 7.10.2015 7.10.2015 8.10.2015 8.10.2015 8.10.2015 8.10.2015 8.10.2015 8.10.2015 8.10.2015 9.10.2015 9.10.2015 9.10.2015 9.10.2015 9.10.2015 9.10.2015 9.10.2015 9.10.2015 1 144046186 DSI 1 144046186 DSI 1 144046186 DSI 1 144046186 DSI 1 144046186 DSI 1 144046186 DSI 1 144046186 DSI 1 144046186 DSI 1 144046186 DSI 1 144046186 DSI 1 144046186 DSI 1 144046186 DSI 2 144046199 DSI 2 144046199 DSI 2 144046199 DSI 2 144046199 DSI 2 144046199 DSI 2 144046199 DSI 1 144046205 DSI 1 144046205 DSI 1 144046205 DSI 1 144046205 DSI 1 144046205 DSI 1 144046205 DSI 1 144046205 DSI 1 144046246 DSI 1 144046246 DSI 1 144046246 DSI 1 144046246 DSI 1 144046246 DSI 1 144046246 DSI 1 144046246 DSI 1 144046246 DSI 100522 Machine (Line Hrs) 0 100522 Labor (Man Hrs) 0 100522 Machine (Line Hrs) 0 100522 Machine (Line Hrs) 0 100522 Labor (Man Hrs) 0 100522 Machine (Line Hrs) 0 100522 Machine (Line Hrs) 0 100522 Labor (Man Hrs) 0 100522 Machine (Line Hrs) 0,28 100522 Machine (Line Hrs) 0,33 104182 Machine (Line Hrs) 0 104182 Labor (Man Hrs) 0 100954 Machine (Line Hrs) 0 100954 Machine (Line Hrs) 4,89 100954 Labor (Man Hrs) 100954 Labor (Man Hrs) 0 100954 Labor (Man Hrs) 0 100954 Machine (Line Hrs) 0,33 100954 Machine (Line Hrs) 7,55 100954 Machine (Line Hrs) 8,01 100954 Labor (Man Hrs) 100954 Labor (Man Hrs) 0 100954 Labor (Man Hrs) 0 100954 Labor (Man Hrs) 0 100954 Machine (Line Hrs) 0,42 108491 Machine (Line Hrs) 6,26 108491 Machine (Line Hrs) 7,13 108491 Labor (Man Hrs) 108491 Labor (Man Hrs) 0 108491 Labor (Man Hrs) 0 108491 Labor (Man Hrs) 0 108491 Machine (Line Hrs) 1,17 108491 Machine (Line Hrs) 0,87 117,36 350,79 285,79 Name Employee 1 Employee 2 Employee 3 Employee 4 Employee 5 Employee 6 Employee 7 Employee 8 Employee 9 Employee 10 Employee 11 Employee 12 Employee 13 Employee 14 Employee 15 Employee 16 Employee 17 Employee 18 Employee 19 Employee 20 Employee 21 Employee 22 Employee 23 Employee 24 Employee 25 Employee 26 Employee 27 Employee 28 Employee 29 Employee 30 Employee 31 Employee 32 Employee 33 Week Ending 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 Payroll Dept File Code Number P12SGM 2196 P12SGM 1503 P12SGM 1525 P12SGM 2233 P12SGM 2201 P12SGM 2203 P12SGM 1735 P12SGM 2231 P12SGM 2240 P12SGM 2066 P12SGM 2032 P12SGM 1077 P12SGM 2221 P12SGM 2168 P12SGM 1887 P12SGM 1786 P12SGM 2227 P12SGM 2183 P12SGM 2218 P12SGM 1620 P12SGM 2229 P12SGM 1942 P12SGM 2186 P12SGM 2243 P12SGM 2176 P12SGM 1952 P13SAN 1857 P13SAN 0324 P13SAN 2205 P13SAN 2092 P13SAN 1546 P13SAN 2181 P13SAN 1892 Badge Number 798921 248193 114875 819217 801669 802472 365234 817336 822858 629203 817345 597257 104059 812892 777164 629226 508318 414431 815603 788695 811707 172379 816192 535614 789996 789988 823941 782593 537835 476997 98509 803032 651844 Emp ID Hours Minutes 0008798 00 0008248 00 0008113 41 26 0008819 36 17 0008801 41 26 0008802 0 0 0008365 41 26 0008817 41 26 0008822 41 26 0008629 41 26 0008817 41 26 0008597 35 36 0776 40 35 0008812 41 26 0008777 0 0 0008629 42 3 0008508 41 26 0008414 34 5 0008815 33 22 0008788 39 25 0008811 41 26 0008172 41 26 0008816 32 58 0008535 38 59 0008789 41 26 0008789 42 3 0008823 39 7 0008782 23 8 0008537 37 53 0008476 42 15 3245 38 31 0008803 42 5 0008651 38 35 Employee 34 Employee 35 Employee 36 Employee 37 Employee 38 Employee 39 Employee 40 Employee 41 Employee 42 Employee 43 Employee 44 Employee 45 Employee 46 Employee 47 Employee 48 Employee 49 Employee 50 Employee 51 Employee 52 Employee 53 Employee 54 Employee 55 Employee 56 Employee 57 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 10.10.2015 P13SAN P13SAN P13SAN P13SAN P13SAN P13SAN P13SAN P13SAN P13SAN P13SAN P13SAN P13SAN P13SAN P13SAN P13SAN P13SAN P13SAN P13SFN P13SFN P13SFN P13SFN P13SFN P13SFN P13SFN 2123 268596 2058 786578 0660 509431 2194 735973 2137 619975 1232 112817 1646 797949 2109 743171 1906 79943 2228 811715 2152 178907 1999 676739 1882 514052 5278 815644 0012 758126 0752 520828 8856 503771 9812 816753 5743 209115 0893 579807 7754 821459 1113 532172 8664 761524 9590 350436 0008268 38 23 0008786 26 24 0008509 41 32 0008735 42 23 0008619 0 0 6606 32 34 0008797 38 29 0008743 41 25 2324 38 35 0008811 38 35 0008178 38 35 0008676 38 8 0008514 38 33 0008815 38 26 0008758 40 40 2082 38 35 0008503 38 33 0008816 34 24 0008209 38 32 0008579 40 16 0008821 18 28 0008532 41 37 0008761 37 45 0008350 38 9 Dept Dept ID Shift DSI P13SAN 1 Slitter P13SEN 1 IPM P13SFN 1 DSI P12SGM 2 Slitter P23SEN 2 Given Information: Note: Assume full absorption of expense dollars Input Prices Product Code Inp123 Inp456 Inp789 Price $1,25 $1,45 $1,38 By-Product Net Realizable Values Product Code BP1 BP2 BP3 Value $0,60 $0,56 $0,75 January Act Expense Dollars Dept Name DSI TSM YAK Labor Dollars $19.931 $21.772 $26.470 Overhead Dollars $16.464 $18.360 $22.940 Standard Expense Rates Dept Name DSI TSM YAK Labor Rate per Man Hr $16,00 $15,50 $16,50 Overhead Rate per Line Hr $150 $160 $155 Actual Data from Production system for January: Production Order Dept Week # Number Name 1 1 DSI 1 2 TSM 1 3 YAK 2 4 DSI 2 5 DSI 2 6 YAK 3 7 YAK 3 8 DSI 3 9 DSI 3 10 TSM 4 11 TSM 4 12 TSM 4 13 TSM 4 14 YAK Finished Finished By-product By-Product Output Output Output Output Product Pounds Product Pounds Code Produced Code Produced A 81.900 BP1 142.740 B 77.900 BP2 107.112 C 69.125 BP1 89.356 B 32.300 BP2 44.816 A 37.800 BP3 68.373 C 68.450 BP1 100.873 C 84.000 BP1 113.400 A 65.000 BP3 106.527 A 17.550 BP3 29.250 B 100.800 BP1 147.581 B 50.000 BP2 73.076 B 20.800 BP2 29.866 A 26.400 BP1 50.560 C 72.000 BP1 93.072 Input Product Code Inp123 Inp123 Inp789 Inp123 Inp123 Inp789 Inp789 Inp456 Inp123 Inp456 Inp456 Inp123 Inp456 Inp789 Input Pounds Act Line Used Hours 234.000 39 194.750 38 168.597 35 80.750 17 111.176 21 180.131 37 210.000 40 180.555 26 48.750 9 258.461 42 128.205 20 53.333 8 80.000 12 175.609 36 Act Man Hours (Labor) 429 380 350 170 210 444 480 312 117 546 220 88 144 360 Standard Cost Model for Product A: Given numbers are in blue Formulas are in black Budget Input Pounds Input Product Code Inp123 10.000.000 Output Pounds Finished Product Code A 3.500.000 By-Product Code BP1 6.100.000 Cutting Loss or Condemned 400.000 $/lb $1,2500 $/lb $0,6000 $0,0000 $/lb $0,0932 $0,0728 $2,6917 Prod A Staffing: Budget Dollars $12.500.000 Dollars $3.660.000 Dollars $326.214 $254.854 $9.421.068 $9.421.068 12 % Input 100,0% % yield 35,0% 61,0% 4,0% 100,0% Throughput = Finished Pounds per Line Hour or per Man Hour NRV = Net Realizable Value and is given for BP1 as $0.60 Expenses Labor - DSI Dept Overhead - DSI Dept Throughput 172 2.060 Rate per Hr $16,00 $150,00 10.000.000 Yielded Input Value Standard Cost Model: Input Price Finished Yield minus By-Product Credit (By-Product NRV Value times By-Product %) plus Finished Yield Labor Cost per Finished Lb Labor Rate per Man Hr (Finished Pounds per Line Hr / Staffing) Overhead Cost per Finished Lb plus Overhead Rate per Line Hr Finished Pounds per Line Hr Product A Standard Cost = $1,2500 - ($0.60 * 61.0%) + $16,00 + $150,00 35,0% 35,0% (2,060 / 12) 2.060 Standard Cost of Finished Product Code A 3.500.000

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