Standard variable costs for Iphone 4

Flash Memory 27
App Processor 10.75
Chip for calls 14.05
Gyroscope 2.6
8 other chips 70.95
125.35
Variable supplies and
tools 62.54
Labor 13.11
Shipping 1.06

Total variable cost 202.06

 0.2062 208.2
hone 4

Factory rent 400,000 Price/unit 206.2

Machine dep 150,000 Variable cost/unit 202.06
Utility fee and tax 52,000 Contribution margin 4.14
Supervision 127,000 Total fixed cost 729,000
Monthly fixed costs 729,000
Break-even qty 176087

4
Expected vs Actual

Expected Actual
Flash Memory 27 29
App Processor 10.75 10.75
Chip for calls 14.05 14.05
Gyroscope 2.6 2.6
8 other chips 70.95 70.24
Variable supplies and
tools 62.54 62.54
Labor 13.11 17.043
Shipping 1.06 1.06
Total variable cost 202.06 207.283
Factory rent 2.00 2.22
Machine dep 0.75 0.83
Utility fee and tax 0.26 0.29
Supervision 0.64 0.71
Monthly fixed costs 3.65 4.05

Total costs 205.71 211.33

Expected Actual
 Fixed budget Actual
200,000 units 180,000 units

Revenue 41240 37476

Variable costs
Materials
Flash Memory 5400 5249
App Process 2150 1935
Chips-phone 2810 2529
Gyroscope 520 468
8 other chips 14190 12643
Var supplies and tools 12507 11305

Sub total 37577 34129

Labor 2622 3092

Shipping 212 191
Total variable costs 40411 37412

Fixed costs
Factory rent 400 400
Mach dep 150 150
Utlity fee 52 52
Supervision 127 134

Total fixed costs 729 736

Total costs 41140 38148

Net income 100 -672

Variance Flexible budget
Variance
20,000 units 180,000 units

-3764 37116 -360

151 4860 -389

215 1935 0
281 2529 0
52 468 0
1547 12771 128
1202 11256 -48.7

3448 33819 -309.7

-470 2360 -732.2

21 191 -0.2
2999 36370 -1042.1

0 400 0
0 150 0
0 52 0
-7 127 -7

-7 729 -7

2992 37099 -1049.1

772 17.1 689.1

 Actual cost
181,000*29

Direct materials 5249000

Actual material
usage Budget usage
181,000*27 180,000*27

4887000 4860000

362000 27000
Price variance Qty variance

389000
Flash memory
variance
 Actual hours * Actual hours * Std labor
Actual rate Standard rate cost
2585*1.196 2585*0.92 2565*0.92

Direct lab 3092 2378 2360

714 19
Rate variance Eff var

732
Lab cost var
Std. labor rate 0.92
Actual rate 1.196
Time req for 200,000 units 2850 Actual labor hours used
Time req for 180,000 units 2565
2585
CVP

Budgeted cost
Price/unit 206.2
Variable cost/unit 202.06
Contribution margin 4.14
Total fixed cost 729,000

Break-even qty 176087

Actual cost
208.20
207.84
0.36
736000

2070000