Two stage Cost system: Stage one

Description Job Preparation Scanning Assembly Output Quality Control Idle

Wages 8000 32000 64000 10000 11000
Depreciation 500 25000 10000 14000 500
Rent 2000 2000 8000 4000 1000
Others 1311.48 5245.90 10491.80 1639.34 1311.48
Total Overhead 11811.48 64245.90 92491.80 29639.34 13811.48
Labor hours 160 640 1280 200 160
Overhead Rate per labo 74 100 72 148 86

Floor Space in sq. ft. 1000 1000 4000 2000 500 6500
Total per Unit
125000
50000
30000 2
20000 8.20
225000
2440
92

15000
 Two stage Cost system: Stage Two

Job Job Preparaton Scanning Assembly Output Quality Control Total

61001 4 32 42 8 7 8332
61002 3 24 38 8 8 7253
61003 7 40 75 16 8 13013
61101 4 16 30 4 4 5007
61102 4 16 28 4 4 4863
61201 4 16 32 4 6 5324
61202 7 32 58 8 5 9537
61203 6 34 64 8 6 10184
61204 6 30 58 8 8 9522
61301 15 130 250 32 30 39554
61401 5 14 32 4 4 5025
61402 4 19 32 8 7 6305
61403 4 20 34 4 3 5612
61404 4 22 36 4 5 6129
61405 4 20 36 4 4 5842
61501 4 21 39 4 4 6160
61502 4 20 40 8 7 6983
61601 7 26 60 8 9 9425
61602 2 5 10 1 1 1607
61603 2 5 11 2 1 1827
61701 4 20 39 4 3 5973
61702 4 20 41 4 5 6290
61801 1 5 11 2 1 1753
61901 2 5 12 1 1 1751
61902 5 19 42 4 5 6336
62001 1 1 2 1 1 553
Idle Time 43 28 128 37 13 21840

Total 160 640 1280 200 160 212000

 Overhead Rate
Description Job PreparaScanning Assembly Output Quality ConIdle
Wages 8000 32000 64000 10000 11000
Depreciation 500 25000 10000 14000 500
Rent 2000 2000 8000 4000 1000 13000
Others 1311 5246 10492 1639 1311
Total Overhead 11811 64246 92492 29639 13811 13000
Labor hours 160 640 1280 200 160

Overhead Rate per labour hour ($) 74 100 72 148 86

Floor Space in sq. ft. 1000 1000 4000 2000 500 6500
Total per Unit
125000
50000
30000 2
20000 8.20
225000
2440

92

15000
 Cumulati
Cumulati ve
ve net Average average
Job Net profit Revenues profit net profit net profit
61202 10163 23000 10163 3651 3651
61203 8416 22000 18579 3493 7144 Chart Title
61204 7278 20000 25857 3175 10319
70000
61601 7275 20000 33132 3175 13494
61003 5487 23000 38619 3651 17146 60000
61101 5193 12000 43812 1905 19051 50000
61102 4637 11000 48449 1746 20797
40000
61201 4176 11000 52624 1746 22543
61902 3464 12000 56089 1905 24448 30000
61501 2640 11000 58729 1746 26195 20000
61405 1958 9800 60687 1556 27750
61702 1210 10000 61897 1588 29338 10000

61401 975 7800 62872 1238 30576 0

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
61404 771 9000 63643 1429 32005
61801 647 4000 64289 635 32640 Col umn D Col u

61502 417 11000 64706 1746 34386

61701 -73 8000 64633 1270 35656
61602 -207 2000 64427 318 35974
62001 -753 0 63673 0 35974
61002 -1153 9600 62521 1524 37498
61402 -1405 8000 61116 1270 38768
61603 -1427 1400 59689 222 38990
61901 -1451 2000 58238 318 39308
61403 -1512 8000 56726 1270 40578
61301 -2554 50000 54172 7938 48516
61001 -4132 9600 50040 1524 50040
50040 315200
 Chart Title

5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
Col umn D Col umn F
 Profitability of jobs

Job
Materials Gross Preparato Quality
Job Revenues Expense margin n Scanning Assembly Output Control Total
61001 9600 5400 4200 4 32 42 8 7 80294
61002 9600 3500 6100 3 24 38 8 8 80283
61003 23000 4500 18500 7 40 75 16 8 107149
61101 12000 1800 10200 4 16 30 4 4 85159
61102 11000 1500 9500 4 16 28 4 4 83158
61201 11000 1500 9500 4 16 32 4 6 83263
61202 23000 3300 19700 7 32 58 8 5 107312
61203 22000 3400 18600 6 34 64 8 6 105321
61204 20000 3200 16800 6 30 58 8 8 101314
61301 50000 13000 37000 15 130 250 32 30 161758
61401 7800 1800 6000 5 14 32 4 4 77060
61402 8000 3100 4900 4 19 32 8 7 77472
61403 8000 3900 4100 4 20 34 4 3 77468
61404 9000 2100 6900 4 22 36 4 5 79475
61405 9800 2000 7800 4 20 36 4 4 81073
61501 11000 2200 8800 4 21 39 4 4 83573
61502 11000 3600 7400 4 20 40 8 7 83581
61601 20000 3300 16700 7 26 60 8 9 101711
61602 2000 600 1400 2 5 10 1 1 65621
61603 1400 1000 400 2 5 11 2 1 64424
61701 8000 2100 5900 4 20 39 4 3 77771
61702 10000 2500 7500 4 20 41 4 5 81776
61801 4000 1600 2400 1 5 11 2 1 69821
61901 2000 1700 300 2 5 12 1 1 65922
61902 12000 2200 9800 5 19 42 4 5 85977
62001 0 200 -200 1 1 2 1 1 62007
Idle Time 43 28 128 37 13 249

Total 315200 75000 240200 2229743

Capacity 160 640 1280 200 160 2440

Total
Operating
cost per Net Profit
job or Loss
8332 -4132.3
7253 -1152.68
13013 5486.716
5007 5192.715
4863 4637.234
5324 4175.553
9537 10162.74
10184 8415.912
9522 7278.361
39554 -2554.03
5025 975.1434
6305 -1404.71
5612 -1511.54
6129 770.5328
5842 1957.623
6160 2640.461
6983 416.834
9425 7275.236
1607 -206.675
1827 -1427.13
5973 -72.833
6290 1210.005
1753 646.6906
1751 -1451.19
6336 3464.308
553 -753.243
21840 -21839.7

190160 28200

212000 -212000
Rework cost
Rework due to change in specification by customer

Labour
cost per Labour Labour
Material hour for cost per cost per Labour
expense Job job hour for hour for cost per
for preparati preparati Scanning scanning Assembly assembly Output hour for
Job# rework on(hrs) on($) (hrs) ($) (hrs) ($) (hrs) output($)
61001 2700 0 74 16 100 10 72 4 148
61002 1100 0 74 8 100 6 72 4 148
61301 1000 2 74 5 100 10 72 2 148
61502 1500 1 74 4 100 8 72 1 148
61801 1000 0 74 1 100 3 72 1 148
61901 1000 1 74 1 100 4 72 0 148
Total 8300 4 35 41 12

Quality control initiated rework of house errors

Material
expense Job Labour Labour Labour Labour
for preparati cost per cost per cost per cost per
Job# rework on hour Scanning hour Assembly hour Output hour
61301 1000 1 74 3 100 4 72 1 148
61402 1000 0 74 9 100 16 72 2 148
61403 1000 0 74 10 100 14 72 2 148
61603 500 1 74 3 100 3 72 1 148
Total 3500 2 25 37 6
r

Labour
cost per
Quatity hour for
control quality
(hrs) control($) Total cost
2 86 5794
3 86 3188
2 86 2841
0 86 2702
0 86 1465
0 86 1463
7 17454

Labour
Quatity cost per
control hour Total cost
1 86 1899
2 86 3529
1 86 3398
0 86 1240
4 10065
 Impact of Rework on Job Profitability

Total Net Profit Cost of Cost of Net Profit

Operating or Loss rework rework or Loss
Materials Gross cost per after (Custome (Inhouse before
Job Revenues Expense margin job rework r) QC) rework
61001 9600 5400 4200 8332 -4132 5794 1662
61002 9600 3500 6100 7253 -1153 3188 2036
61003 23000 4500 18500 13013 5487 5487
61101 12000 1800 10200 5007 5193 5193
61102 11000 1500 9500 4863 4637 4637
61201 11000 1500 9500 5324 4176 4176
61202 23000 3300 19700 9537 10163 10163
61203 22000 3400 18600 10184 8416 8416
61204 20000 3200 16800 9522 7278 7278
61301 50000 13000 37000 39554 -2554 2841 1899 2186
61401 7800 1800 6000 5025 975 975
61402 8000 3100 4900 6305 -1405 3529 2124
61403 8000 3900 4100 5612 -1512 3398 1887
61404 9000 2100 6900 6129 771 771
61405 9800 2000 7800 5842 1958 1958
61501 11000 2200 8800 6160 2640 2640
61502 11000 3600 7400 6983 417 2702 3118
61601 20000 3300 16700 9425 7275 7275
61602 2000 600 1400 1607 -207 -207
61603 1400 1000 400 1827 -1427 1240 -187
61701 8000 2100 5900 5973 -73 -73
61702 10000 2500 7500 6290 1210 1210
61801 4000 1600 2400 1753 647 1465 2112
61901 2000 1700 300 1751 -1451 1463 12
61902 12000 2200 9800 6336 3464 3464
62001 0 200 -200 553 -753 -753
Idle Time 21840 -21840 -21840
55719
 Net Profit Profit per Revenue Cost per
Job Pages or Loss page Revenues per page page
61001 16 -4132 -258 9600 600 858
61002 16 -1153 -72 9600 600 672
61003 32 5487 171 23000 719 547
61101 16 5193 325 12000 750 425
61102 16 4637 290 11000 688 398
61201 16 4176 261 11000 688 427
61202 32 10163 318 23000 719 401
61203 32 8416 263 22000 688 425
61204 32 7278 227 20000 625 398
61301 128 -2554 -20 50000 391 411
61401 16 975 61 7800 488 427
61402 16 -1405 -88 8000 500 588
61403 16 -1512 -94 8000 500 594
61404 16 771 48 9000 563 514
61405 16 1958 122 9800 613 490
61501 16 2640 165 11000 688 522
61502 16 417 26 11000 688 661
61601 32 7275 227 20000 625 398
61602 4 -207 -52 2000 500 552
61603 4 -1427 -357 1400 350 707
61701 16 -73 -5 8000 500 505
61702 16 1210 76 10000 625 549
61801 4 647 162 4000 1000 838
61901 4 -1451 -363 2000 500 863
61902 16 3464 217 12000 750 533
62001 1 -753 -753 0 0 753
Idle Time -21840