Valves

Pumps

Flow Controllers

Variable Cost
Labor
Material

10
16

12.5
20

10
22

Mfg Overhead
UVC

30
56

37.5
70

30
62

35%

35%

35%

86.15
86
35%

107.69
87
20%

95.38
105
41%

Target GM
Target Selling Price
Actual Selling Price
Actual GM

Valves
Production
Machine Hours
Production Runs
No. of shipments
Hours of engi. Works
Direct Labour(Hours/unit)
Direcrt Labour Hours
Direct Material Cost/unit

Direct Labour(Hours/unit)
Direct Material
Mfg Overhead
Machine Related Expenses
Setup Labour
Rec & prod control
Engineering
Packaging & Shipping
Total Mfg Overhead

Unit Variable Cost

Unit Overheads
Total Unit Cost
Target GM

Pumps
Flow Controllers
7500
12500
4000
3750
6250
1200
10
50
100
10
70
220
250
375
625
0.4
0.5
0.4
3000
6250
1600
16
20
22

Valves
Pumps
Flow Controllers
75000
156250
40000
120000
250000
88000
112500
2500
11250
20000
5000

187500
12500
56250
30000
35000

36000
25000
112500
50000
110000

151250

321250

333500

New Method
Valves
Pumps
Flow Controllers
26
32.5
32
20.17
25.70
83.38
46.17

58.20

115.38

35%

35%

35%

Target Selling Price

Actual Selling Price
Actual GM

71.03
86
46%

89.54
87
33%

177.50
105
-10%

Activity
Total Expenses
Direct Labour expenses
271250
Direct material expenses
458000
Mfg overheads
Machine Related Expense
336000
Setup Labour
40000
Rec & prod control
180000
Engineering
100000
Packaging & Shipping
150000

Total

Capacity
24000
11200
160
300
1250

12000
180
400

10850

Total Expense
Rate
271250
458000 336000
40000
180000
100000
150000

Status
25

30
250
1125
80
500

806000

Existing Metho
Unit Variable Cost
Unit Overheads
Total Unit Cost
Target GM

Target Selling Price

Actual Selling Price
Actual GM

Driver
Unit Rate
Labour Hours
25
No. of components & unit rates
Machine Hours
Production Runs
Production Runs
Hours of engi. Works
No. of shipments

30
250
1125
80
500

Existing Method
Valves

Pumps
Flow Controllers
26
32.5
32
30.00
37.50
30.00
56.00

70.00

62.00

35%

35%

35%

86.15
86
35%

107.69
87
20%

95.38
105
41%