Tell me what you want to do Home Insert Page Layout Formulas

Tell me what you want to do Home Insert Page Layout Formulas Data Review View File General o Cut Calibri Copy . , Format Painter Merge & Center. $. %, lu.-. O-A- ste B Alignment Font 17 AB Activity Case Individual Case 2 Danshui Plant No. 2 Exhibit 1 Standard Variable Costs for iPhone 4 (U.S. Dollars) Bill of materials (per unit) 0 Purchased chips Flash memory (Samsung) Application processor (Samsung) Chip for phone calls (Infinion) Gyroscope (STMMicroelectronics) 8 other purchased chips $27.00 10.75 14.05 2.60 70.95 15 16 $125.35 62.54 $187.89 Variable supplies and tools 18 19 20 21 Shipping (per unit) Labor 13.11 1.06 Assembly and packaging (per unit) 23 24 25 26 Machine depreciation 27 Utility fee and local taxes 28 Supervision 29 Monthly fixed costs 30 31 32 Exhibit 2 Budgeted Fixed Overhead per Month Factory rent 400,000 150,000 52,000 127,000 $ 729,000 DANSHUI PLANT NO. 2

Solution

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)