文档介绍：该【SQAHND财政预算】是由【我是开始】上传分享，文档一共【8】页，该文档可以免费在线阅读，需要了解更多关于【SQAHND财政预算】的内容，可以使用淘豆网的站内搜索功能，选择自己适合的文档，以下文字是截取该文章内的部分文字，如需要获得完整电子版，请下载此文档到您的设备，方便您编辑和打印。Contents
.........................................................................................................-2-
...............................................................................................-2-
,LabourvariancesandtheTotaloverhead....-2-
,labourvariancesandthetotaloverhead...-2-
.........................................................................................-3-
(variances)...........................................-4-
.......................................-5-
...........................................................-5-
.....................................................................................-5-
......................................................................-5-
................................................................-6-
........................................................-6-
..........................................................................................................-6-
..........................................................................................................-7-

,Firstofall,Iwill
,thiswillincludingthe
Materialsvariances,,Iwill
,accordingto
dataanalysis,therehavebeensomerecommendationstomanagementofMatteck
,Itwillhavefourdifferentwaystoevaluatefinancialperformanceand
,Payback,NPVand
IRR.
PartA

ForFlexbudgedofMatteckPLC,wecanseetheAppendix1.
,Labourvariancesand
theTotaloverhead.
,labourvariancesandthe
totaloverhead.
ThissectionshowstheAppendix2.
.
Materialpricevariance:
Thematerialpricevarianceis₤32,000(F).Accordingtothedataanalysis,itis₤2/kg
:
first,theycouldreplacerawmaterials,usingalower-,the
,learnfrom
thecase,
theproductfromoverseas,accordingtodifferentexchangerate,thematerialwill
reducetheprice.
Materialusagevariance:
Thematerialusagevarianceis₤30,000(A).Thepossiblereasonsincludetheeffectsof

materials,
thesametime,thecaseshowsthatthecompany'snewmachinerycanbefullyusedin

thanplanned.
Materialtotalvariance:
Thematerialtotalvarianceis2,000(F).Caseshowsthatthecompany'srawmaterials

pricevarianceis32,000(F).Ontheotherhand,thecompanyhasintroducedanew
machine,theinfluenceofmachineinstalledtime,causedsomewastedofmaterials.
Thismakesthematerialusagevarianceis₤30000(A).EvenifThecompany’s
materialtotalvarianceis2000(F).Thecompany'smanagementstillshouldpay
attentiontoTheutilizationofrawmaterials.
Labourefficiencyvariance:
TheLabourefficiencyvarianceis10,000(F).Thepossiblereasonscouldincludethenewmachine
,the

workingefficientlythroughthehigherskill.
LabourRateVariance:
TheLabourratevarianceis15,000(A).Throughthecalculation,thelabourrateis
₤₤
.
LabourTotalVariance:
theLabourtotalvarianceis5,000(A).Thereasonsofvariance,thecompanyhas
introducedthenewmachine,Astheresultthedirectlaborefficiencyvarianceis
favorablewhichis10,000(F).Onotherhand,thelabourrateishigherthanstandard
,leadtothelabourtotalvarianceisadverse,
(variances).

thesametime,throughthedifferentvariance,thecompanycanknowmoreaboutthemarket
information.

willacceleratewasteofmaterialandthenleadtothematerialusageisincrease,theperformance
monitorcanhelpthecompanyshrinkthevariance.
:thecompanycanprovidesomemotivationpoliciestomotivatethestaffthatis

efficiency.
PartB
.
.
ARR
Averageprofit=3,300,000
5
=660,000
660,000
Accountingrateofreturn=
2,500,000
=%
Thecasesshowthatthecompanyshouldhaveanaccountingrateofreturnofatleast
15%,throughcalculation,%.Therefore,thedatahasmeetcompany
standards.
.
,
theyjustuse3years341days.(seeAppendix3.)
.
TheNPVmethodcalculatesthepresentvaluesofcashinflowsandoutflowsand
,NPVprovidesanobjectiveforevaluatingandselecting
,ittakesintoaccountrequiredrateofreturnof

,theexchange
rate.
WhentheMatteck’scostofcapitalis10%.TheNPVis(46200).TheNPVvalue
.(seeAppendix4.)
.
Whenthepresentvalueis5%,%.Whichlessthan10%of
,thecompanyshouldnotinvestthisproject.
(seeAppendix5)
.
,TheARRandPaybackarebothimplementforthisproject,butthe
,thecompanyshouldfocusonthe
NPVandIRR.
,itseemsthatthedeficit,whichmeansthatthe
annualcashflowsarenotenoughtoallowmoreinteresttobedeductedandstillrepay
.

PLCshouldnotconcernwiththeproject.

Thereportcanhelpthecompanymaketheflexbudget,andthenbyvariancesanalysisandusethe

choosethebestinvestmenttogainthemaximumprofits.

MatteckPLCFlexedbudget
ForDecember2011
OriginalbudgetFlexedbudgetActualresultsVariance
5000units4500units4500unitsF/A
₤₤₤₤
DirectMaterial180,000162,000160,0002000(F)
DirectLabour100,00090,00095,0005000(A)
Variable50,00045,00047,5002500(A)
Overheads
SupervisionCost3,3003,3003,400100(A)
RentandRates1,0001,0001,200200(A)
Administration2,0002,0002,100100(A)
Overheads
Depreciation3,0003,0003,0000
Total306,300312,2005,900(A)

Payback
Capitalcost₤2,500,00
Year1₤500,000
Year2₤600,000
Year3₤700,000
Year4₤750,000
Year5₤750,000
Total₤3,300,000
2,500,0001,800,000
Payback=3year+×365days
750,000
=3year341days