Pertemuan 9 Flexible Budgets and Overhead Analysis Pengertian

Pertemuan 9 Flexible Budgets and Overhead Analysis

Pengertian Flexible Budget atau Anggaran Variabel Adalah anggaran yang di desain untuk mencakup jangkauan aktivitas yang digunakan untuk mengembangkan biaya yang dianggarkan pada titik manapun dalam rentang aktivitas tersebut untuk dibandingkan dengan biaya sesungguhnya pada suatu perusahaan. Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

Definisi lain menyatakan : Flexible budget adalah anggaran yg dapat disesuaikan dengan berbagai tingkat aktivitas guna mncerminkan bagaimana biaya-biaya berubah seiring dengan perubahan volume produksi. Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

Flexible budget berbeda denga anggaran Statis. Anggaran statis adalah anggaran yang dibuat untuk satu tingkat kegiatan (one level of activity) selama jangka waktu tertentu. Contohnya persentase dari kapasitas, jumlah produk yang dihasilkan selama jangka waktu tertentu, jumlah jam yang dikerjakan dan lainnya. Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

a. b. Perbedaan Anggaran Statis dengan Anggaran Fleksibel Flexible Budget tidak membatasi diri hanya pada satu tingkat aktivitas, tetapi pada beberapa tingkat kisaran aktivitas (range activity atau relevant activity). Static Budget diarahkan pada satu tingkat saja. Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

b. Dalam pendekatan Flexible Budget hasil dari actual tidak harus dibandingkan biaya yang dibudgetkan pada tingkat budget aktivitas semula, pada static budget harus dibandingkan Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

c. Flexible Budget bersifat dinamik , . Static budget bersifat statis. d. Pada Flexible Budget terdapat under or over applied, dan static budget istilah ini tidak ada. Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

2. Karaktetristik dari Flexible Budget 1). Ditujukan ke arah tingkat kapasitas keseluruhan yang berada dalam “range relevan atau relevant range” dari pada tingkat aktivitas tertentu dan hanya ditujukan kearah satu tingkat aktivitas (Denomonitory Activity). Denominator Activitry adalah angka yang ditentukan dalam flexible budget yang dapat digunakan untuk menentukan jumlah total biaya overhead pabrik pada tingkat aktivitas tertentu dari relevant range. Tarif biaya overhead pabrik ditentukan dimuka = BIaya FOH Flexible budget/Denominator activity. Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

2). Bersifat dinamis dari anggaran statis, karena flexible budget dapat disesuaikan dengan tingkat aktivitas apa pun yang berada dalam relevant range/activity, sekalipun periode sudah berlalu. Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

3). Dalam masalah perhitungan Overhead (non manufaktur) dan Factory Overhead (Manufaktur) terdapat 4 faktor yang dapat di analisis dalam flexible budget yaitu : Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

(1) FOH ( Pabrik dan Non pabrik ) umumnya terdiri dari atas biaya yang banyak terpisah satu sama lainnya (2) Biaya yang terpisah ini kerap sangat kecil nilai $/rupiahnya sehingga menyulitkan untuk mengendalikannya dengan cara yang sama dengan pengendalian Direct Material Cost dan Direct Labor Cost. Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

(3). Biaya yg terpisah lainnya kecil ini sering kali merupakan tanggung jawab atau pusat pertanggung jawaban dari manajer yang saling berbeda pada segemen yang berbeda pula. (4). Biaya FOH ( khusus pabrik) berbeda perilaku biayanya , variabel, tetap dan semi variabel. Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

Tahap-tahap Flexible budget dapat berjalan dengan baik. 1. Menentukan kisaran relevan atas aktivitas yg diharapkan berfluktuasi masa periode yang akan datang. 2. Menganalisis biaya pada relevant range dalam elemen varabel, tetap dan semi vaiabel. . 3. Memisahkan biaya berdasarkan perilakunya dan menetupan tarif untuk biaya, tetap , varabel dan semi variabel Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

4. Menggunakan tarif untuk bagian variabel dari biaya, menyusun sebagai budget yg memperlihatkan biaya-biaya apa yg akan dikeluarkan pada berbagai titik operasi pada semua relevant range. 5. Melakukan analisis Varians khusus Overhead dan Factory Overhead atas Biaya Variabel dan Biaya Variabel untuk mengukur kinerja perusahaan. Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

Ada 4 varians dalam Flexible Budget yaitu: 1 Varians variabel (Variable Manufacturing Overhaed Variance ). VMOV 1). Spending V = Variable manufacturing Overhead Spending variance) VMOSV = AH(AR-SR)= (AOVR X AH)- (SOVRXAH) = (AOVR-SOVR) AH. 2). Variable Manufacturing Overhead Efficiency Variancer (VMOEV) = SR(AH-SH) (SOVR x. AH) –(SVORx. SH) = (SH-AH)SVOR Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

2. Fixed Manufacturing Ovrhead Variance (FMOV) Dicari dulu POR = Taksiran Jumlah FOH periode/ Taksiran Machie hours(MH) atau unit yg diproduksi periode. Contoh : Untuk bulan Oktober 2006 Biaya FOH tetap ditaksir $ 381. 000, jumlah unit diprodusi maka biaya per unit (POR) = $ 31. 000/1. 000 = $ 381/unit. Dalam perhitungan Flexible Budget harus dapat ditntukan taksiran Demoninatory Actvity yaitu tingkat ketigatan aktivitas pada jumlah jam mesin/JTKL tertentu diatnara relevan range untuk periode masa depan yang ditetapkan pada awal tahun anggaran. Varians pada FOH teap, ada dua varians. Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

3). Fixed Manufacturuing overhead Volume Variance (FMOVV) : Volume Variance= POR x ( DMH - SMH) atau Fixed portion of the POR x( DM –SH allowed). DM=Denomitory activity. Penggunaan Denomitory aktivity ada 3 hal diperhatikan : a. Jika Denominator activity sama dengan jam standar allowed pada priode ini maka Volume Varians nihil. b. JIka denominator activity lebih besar dari jam standard allowed dalam priode ini kemudian timbul varians volume UF, berarti penggunaan di bawah fasilitas yang tersedia. c. Jika denominator activity lebih kecil dari jam standar allowed dalam priode ini, kemudian timbul varians volume UF, berarti penggunaan yang tinggi terhadap fasilitas yang tersedia dibandingkan yang telah direncanakan. 4). Fixed Manufactruing Overhead Budget variance atau Budget Variance= Actual Fixed FOH cost- Budgeted Fixed © The Mc. Graw-Hill Companies, Inc. , 2003 FOH Cost. Mc. Graw-Hill/Irwin

1. Contoh. Kohn Mountain menggunakan Flexible Budget untuk operasi perusahaannya dan mempunyai data sebagian dari relevant range 5. 000 unit – 10. 000 unit. Biaya 5. 000 unit 10. 000 unit. Depresiasi $ 3. 000 Power 10. 000 20. 000 Bahan tak langsung 9. 000 10. 000 Pemeliharaan 8. 500 10. 000 Biaya lainnya. 5. 000 7. 000 Jumlah $ 35. 500 $ 50. 000 Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

Diminta : a. Susunlah Flexible Budget dalam kompenen biaya. b. Buatlah Flexible budget dengan kenaikan 1. 250 unit. c. Grafik Flexible budget. d. Hitunglah “semi variabel cost “ pada tingkat aktivitas 7. 500 unit. Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

Jawab : 1. Flexible budget dengan analisis kompenen. Biaya tetap adalah depresiasi = $ 3. 000. 2 -Power : maksimum = $ 20. 000 = 10. 000 unit minimum = $ 10. 000 = 5. 000 unit High and low $ 10. 000 = 5. 000 unit Elemen variabel $ 10. 000/5. 000 = $ 20. Elemen tetap : maksimum =10. 000 x$20 = $ 20. 000, sama dengan biayanya $20. 000, Elemen tetap= 0 Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

3. Bahan tidak langsung dengan hal yang sama: Elemen variabel = Mak 10. 000 unit = $ 10. 000 Min 5. 000 unit = 9. 000 5. 000 unit = $ 1. 000 Elemen variabel= $ 1. 000/5000 = $ 0, 20 unit Elemen tetap = Mak: 10. 000 = $ 10. 000 x 0, 20 =. 2. 000 Elemen tetap $ 8. 000 Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

4. Pemeliharaan : Mak: 10. 000 unit = $ 10. 000 5. 000 unit = 8. 500 5. 000 unit $ 1. 500 Elemen variabel = $1. 500/5000 = $0, 30. unit Elemen tetap Mak =10. 000. = $ 10. 000 x 0, 30=. 3. 000 Elemen tetap $ 7. 000 Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

5. Biaya lainnya: Mak : 10. 000 Min 5. 000 =$ 7. 000 = 5. 000 = $ 2. 000 Element variabel = $ 2. 000/5. 000 = $ 0, 40 unit Elemen tetap = $ 7. 000 – ( $0, 40 x 10. 000) = $ 3. 000 Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

Budget Flexible dengan kompenen (bentuk High and low) adalah berikut ini : Relevan Range 5. 000 – 10. 000 unit. Biaya Tetap Biaya Variabel Depresiasi 3. 000 0 Power 0 20 unit Bahan tak langsung 8. 000 0, 20 unit Pemeliharaan 7. 000 0, 30 unit Biaya lainnya. 3. 000 0, 40 unit Jumlah $ 21. 000 $ 2. 90 unit Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

Dari hasil diatas dapat dihitun pada tingkat relevant range tertentu dengan rumus Y = a + bx atau $ 21. 000+2, 90 X Tingkat aktivitas setiap 200 unit Relevant range ( unit) Biaya 5. 000 6. 250. 7. 500 8. 750. 10. 000 Depresiasi 3. 000 Power 10. 000 12. 500 15. 000 17. 500 20. 000 Bahan tak langsung 9. 000 9. 250 9. 500 9. 750 10. 000 Pemeliharaan 8. 500 8. 875 9. 250 9. 625 10. 000 Biaya lainnya 5. 000 5. 500 6. 000 6. 500 7. 000 Jumlah 35. 500 39. 125 42. 750 46. 375 50. 000 © The Mc. Graw-Hill Companies, Inc. , 2003 Mc. Graw-Hill/Irwin

c. Grafik Flexible Budget, hampir sama dengan grafik Fixed Cost dan Variabel cost. d. Menghitung Biaya Semi Variabel pada tingkat 7. 500 unit Perguanakan Formula Y = a + b. X l Bahan tak langsung = $ 8. 000 + $0, 20 X l Pemeliharaan = 7. 000 + $0, 30 X l Biaya lainnya = 3. 000 + $0, 40 X Jumlah Y = $ 18. 000+ $0, 90 X Tingat relevant range 7. 500, maka biaya semi variabelnya adalah $ 18. 000 +( $0, 90 x 7. 500) = $ 24. 750. Depresiasi dan Power tidak dihitung karena kedua bersifat tetap dan variabel secara total. Bahan lainnya dapat dilihat dari Power Point berikut ini. Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

Static Budgets and Performance Reports Static budgets are prepared for a single, planned level of activity. Hmm! Comparing static budgets with actual costs is like comparing apples and oranges. Performance evaluation is difficult when actual activity differs from the planned level of activity. Let’s look at Cheese. Co. Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

Static Budgets and Performance Reports Cheese. Co Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

Static Budgets and Performance Reports Cheese. Co U = Unfavorable variance Cheese. Co was unable to achieve the budgeted level of activity. Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

Static Budgets and Performance Reports Cheese. Co F = Favorable variance that occurs when actual costs are less than budgeted costs. Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

Static Budgets and Performance Reports Cheese. Co Since cost variances are favorable, have we done a good job controlling costs? Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

Flexible Budgets Show revenues and expenses that should have occurred at the actual level of activity. May be prepared for any activity level in the relevant range. Reveal variances due to good cost control or lack of cost control. Improve performance evaluation. Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

Preparing a Flexible Budget To a budget we need to know that: l Total variable costs change in direct proportion to changes in activity. l Total fixed costs remain unchanged within the relevant range. Mc. Graw-Hill/Irwin le b a i r a V Fixed © The Mc. Graw-Hill Companies, Inc. , 2003

Preparing a Flexible Budget Cheese. Co Cost Formula Per Hour Total Fixed Cost Machine hours Variable costs Indirect labor Indirect material Power Total variable cost Fixed costs Depreciation Insurance Total fixed cost Total overhead costs Mc. Graw-Hill/Irwin Flexible Budgets 8, 000 10, 000 Hours 8, 000 $ 4. 00 3. 00 0. 50 7. 50 12, 000 Hours 10, 000 12, 000 Variable costs are expressed as $ 32, 000 amount per hour. a constant 24, 000 $40, 000 4, 000÷ 10, 000 hours $ 60, 000 $4. 00 per hour. $12, 000 is Fixed costs are expressed as a total amount. © The Mc. Graw-Hill Companies, Inc. , 2003

Preparing a Flexible Budget Cheese. Co Cost Formula Per Hour Total Fixed Cost Machine hours Variable costs Indirect labor Indirect material Power Total variable cost 8, 000 $ Fixed costs $4. 00 Depreciation Insurance Total fixed cost Total overhead costs Mc. Graw-Hill/Irwin Flexible Budgets 8, 000 10, 000 Hours 4. 00 3. 00 0. 50 7. 50 10, 000 12, 000 Hours 12, 000 $ 32, 000 24, 000 $ 60, 000 per hour × 8, 000 hours = $32, 000 $12, 000 © The Mc. Graw-Hill Companies, Inc. , 2003

Preparing a Flexible Budget Cheese. Co Cost Formula Per Hour Total Fixed Cost Machine hours Variable costs Indirect labor Indirect material Power Total variable cost Fixed costs Depreciation Insurance Total fixed cost Total overhead costs Mc. Graw-Hill/Irwin Flexible Budgets 8, 000 10, 000 Hours 8, 000 $ 4. 00 3. 00 0. 50 7. 50 10, 000 12, 000 Hours 12, 000 $ 32, 000 24, 000 $ 60, 000 $12, 000 $ 14, 000 $ 74, 000 ? © The Mc. Graw-Hill Companies, Inc. , 2003

Preparing a Flexible Budget Cheese. Co Cost Formula Per Hour Total Fixed Cost Machine hours Variable costs Indirect labor Indirect material Power Total variable cost Fixed costs Depreciation Insurance Total fixed cost Total overhead costs Mc. Graw-Hill/Irwin Flexible Budgets 8, 000 10, 000 Hours 8, 000 10, 000 4. 00 $ 32, 000 3. 00 fixed costs 24, 000 Total 0. 50 not change 4, 000 do in $ 7. 50 $ 60, 000 $ 40, 000 30, 000 5, 000 $ 75, 000 $12, 000 $ 14, 000 $ 89, 000 the relevant range. $ 12, 000 $ 14, 000 $ 74, 000 12, 000 Hours 12, 000 © The Mc. Graw-Hill Companies, Inc. , 2003

Preparing a Flexible Budget Cheese. Co Cost Formula Per Hour Total Fixed Cost Machine hours Variable costs Indirect labor Indirect material Power Total variable cost Fixed costs Depreciation Insurance Total fixed cost Total overhead costs Mc. Graw-Hill/Irwin $ 4. 00 3. 00 0. 50 7. 50 $12, 000 Flexible Budgets 8, 000 10, 000 Hours 12, 000 Hours 8, 000 10, 000 12, 000 $ 32, 000 24, 000 $ 60, 000 $ 40, 000 30, 000 5, 000 $ 75, 000 $ 48, 000 36, 000 $ 90, 000 $ 12, 000 $ 14, 000 $ 74, 000 $ 12, 000 $ 14, 000 $ 89, 000 $ 12, 000 $ 14, 000 $ 104, 000 © The Mc. Graw-Hill Companies, Inc. , 2003

Flexible Budget Performance Report Cheese. Co Flexible budget is prepared for the Cost Total Formula Fixed Flexible same activity level Per Hour Costs Budget (8, 000 hours) as Machine hoursachieved. 8, 000 actually Variable costs Indirect labor Indirect material Power Total variable costs Fixed Expenses Depreciation Insurance Total fixed costs Total overhead costs Mc. Graw-Hill/Irwin $ $ 4. 00 3. 00 0. 50 7. 50 Actual Results 8, 000 Variances 0 $ 34, 000 25, 500 3, 800 $ 63, 300 $ 12, 000 2, 050 $ 14, 050 $ 77, 350 © The Mc. Graw-Hill Companies, Inc. , 2003

Flexible Budget Performance Report Cheese. Co Cost Formula Per Hour Total Fixed Costs Machine hours Variable costs Indirect labor Indirect material Power Total variable costs Fixed Expenses Depreciation Insurance Total fixed costs Total overhead costs Mc. Graw-Hill/Irwin $ $ 4. 00 3. 00 0. 50 7. 50 $ 12, 000 Flexible Budget Actual Results 8, 000 $ 32, 000 24, 000 $ 60, 000 $ 34, 000 Variances 0 $ 2, 000 U $ 12, 000 $ 14, 000 $ 74, 000 © The Mc. Graw-Hill Companies, Inc. , 2003

Flexible Budget Performance Report Cheese. Co Cost Formula Per Hour Total Fixed Costs Machine hours Variable costs Indirect labor Indirect material Power Total variable costs Fixed Expenses Depreciation Insurance Total fixed costs Total overhead costs Mc. Graw-Hill/Irwin $ $ 4. 00 3. 00 0. 50 7. 50 $ 12, 000 Flexible Budget Actual Results 8, 000 $ 32, 000 24, 000 $ 60, 000 $ 34, 000 25, 500 Variances 0 $ 2, 000 U 1, 500 U $ 12, 000 $ 14, 000 $ 74, 000 © The Mc. Graw-Hill Companies, Inc. , 2003

Flexible Budget Performance Report Cheese. Co Cost Formula Per Hour Total Fixed Costs Machine hours Variable costs Indirect labor Indirect material Power Total variable costs Fixed Expenses Depreciation Insurance Total fixed costs Total overhead costs Mc. Graw-Hill/Irwin $ $ 4. 00 3. 00 0. 50 7. 50 $ 12, 000 Flexible Budget Actual Results 8, 000 $ 32, 000 24, 000 $ 60, 000 $ 34, 000 25, 500 3, 800 $ 63, 300 $ 2, 000 U 1, 500 U 200 F $ 3, 300 U $ 12, 000 $ 14, 000 $ 74, 000 $ 12, 000 2, 050 $ 14, 050 $ 77, 350 0 50 U $ 3, 350 U Variances 0 © The Mc. Graw-Hill Companies, Inc. , 2003

Static Budgets and Performance How much of the $11, 650 is due to activity and how much is due to cost control? Static Budget Machine hours Variable costs Ind irect labor Indirect materials Power Fixed costs Depreciation Insurance Total overhead costs Mc. Graw-Hill/Irwin Actual Results Variances 10, 000 8, 000 2, 000 U $ 40, 000 30, 000 5, 000 $ 34, 000 25, 500 3, 800 $6, 000 F 4, 500 F 1, 200 F 12, 000 2, 050 0 50 U $ 89, 000 $ 77, 350 $11, 650 F © The Mc. Graw-Hill Companies, Inc. , 2003

Flexible Budget Performance Report Overhead Variance Analysis Let’s place the flexible budget for 8, 000 hours here. Difference between original static budget and actual overhead = $11, 650 F. Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

Flexible Budget Performance Report Overhead Variance Analysis Activity This $15, 000 F variance is due to lower activity. Mc. Graw-Hill/Irwin Cost control This $3, 350 U flexible budget variance is due to poor cost control. © The Mc. Graw-Hill Companies, Inc. , 2003

Flexible Budget Performance Report What causes the cost control variance? Mc. Graw-Hill/Irwin There are two primary reasons for unfavorable variable overhead variances: 1. Spending too much for resources. 2. Using the resources inefficiently. © The Mc. Graw-Hill Companies, Inc. , 2003

Overhead Rates and Overhead Analysis Recall that overhead costs are assigned to products and services using a predetermined overhead rate (POHR): Assigned Overhead = POHR × Standard Activity POHR Mc. Graw-Hill/Irwin = Overhead from the flexible budget for the denominator level of activity Denominator level of activity © The Mc. Graw-Hill Companies, Inc. , 2003

Overhead Rates and Overhead Analysis – Example Cola. Co prepared this Machine Hours 2, 000 4, 000 Total Variable Overhead $ budget for overhead: Variable Overhead Rate 4, 000 ? 8, 000 ? Total Fixed Overhead $ Fixed Overhead Rate 9, 000 ? Let’s calculate overhead rates. Cola. Co applies overhead based on machine hour activity. Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

Overhead Rates and Overhead Analysis – Example Cola. Co prepared this Machine Hours 2, 000 4, 000 budget for overhead: Total Variable Overhead Rate Total Fixed Overhead $ $ $ 4, 000 8, 000 2. 00 Fixed Overhead Rate 9, 000 ? Rate = Total Variable Overhead ÷ Machine Hours This rate is constant at all levels of activity. Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

Overhead Rates and Overhead Analysis – Example Cola. Co prepared this Machine Hours 2, 000 4, 000 budget for overhead: Total Variable Overhead Rate Total Fixed Overhead Rate $ $ 4, 000 8, 000 2. 00 9, 000 4. 50 2. 25 Rate = Total Fixed Overhead ÷ Machine Hours This rate decreases when activity increases. Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

Overhead Rates and Overhead Analysis – Example Cola. Co prepared this Machine Hours 2, 000 4, 000 budget for overhead: Total Variable Overhead Rate Total Fixed Overhead Rate $ $ 4, 000 8, 000 2. 00 9, 000 4. 50 2. 25 The total POHR is the sum of the fixed and variable rates for a given activity level. Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

Variable Overhead Variances – Example Cola. Co’s actual production for the period required 3, 200 standard machine hours. Actual variable overhead incurred for the period was $6, 740. Actual machine hours worked were 3, 300. Compute the variable overhead spending and efficiency variances. Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

Variable Overhead Variances Actual Variable Overhead Incurred Flexible Budget for Variable Overhead at Actual Hours AH × AR AH × SR Spending Variance Flexible Budget for Variable Overhead at Standard Hours SH × SR Efficiency Variance Spending variance = AH(AR - SR) Efficiency variance = SR(AH - SH) Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

Variable Overhead Variances – Example Actual Variable Overhead Incurred Flexible Budget for Variable Overhead at Actual Hours 3, 300 hours × $2. 00 per hour $6, 740 Spending variance $140 unfavorable $6, 600 Flexible Budget for Variable Overhead at Standard Hours 3, 200 hours × $2. 00 per hour $6, 400 Efficiency variance $200 unfavorable $340 unfavorable flexible budget total variance Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

Variable Overhead Variances – Example Actual Variable Overhead Incurred Flexible Budget for Variable Overhead at Actual Hours 2, 050 hours × $5 per hour $10, 950 Spending variance $700 unfavorable $10, 250 Flexible Budget for Variable Overhead at Standard Hours 2, 100 hours × $5 per hour $10, 500 Efficiency variance $250 favorable $450 unfavorable flexible budget total variance Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

Variable Overhead Variances – A Closer Look Spending Variance Results from paying more or less than expected for overhead items and from excessive usage of overhead items. Mc. Graw-Hill/Irwin Efficiency Variance Controlled by managing the overhead cost driver. © The Mc. Graw-Hill Companies, Inc. , 2003

Overhead Rates and Overhead Analysis – Example Cola. Co prepared this Machine Hours 2, 000 4, 000 budget for overhead: Total Variable Overhead Rate Total Fixed Overhead Rate $ $ 4, 000 8, 000 2. 00 9, 000 4. 50 2. 25 What is Cola. Co’s fixed overhead rate for an estimated activity of 3, 000 machine hours? Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

Overhead Rates and Overhead Analysis – Example Cola. Co prepared this Machine Hours 2, 000 4, 000 budget for overhead: Total Variable Overhead Rate Total Fixed Overhead Rate $ $ 4, 000 8, 000 2. 00 9, 000 4. 50 2. 25 Fixed Overhead Rate FR = $9, 000 ÷ 3, 000 machine hours FR = $3. 00 per machine hour Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

Fixed Overhead Variances – Example Cola. Co’s actual production required 3, 200 standard machine hours. Actual fixed overhead was $8, 450. Compute the fixed overhead budget and volume variances. Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

Fixed Overhead Variances Actual Fixed Overhead Incurred Budget Variance Fixed Overhead Budget Fixed Overhead Applied SH × FR Volume Variance FR = Standard Fixed Overhead Rate SH = Standard Hours Allowed Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

Fixed Overhead Variances – Example Actual Fixed Overhead Incurred Fixed Overhead Budget Fixed Overhead Applied SH × FR 3, 200 hours × $3. 00 per hour $8, 450 $9, 000 $9, 600 Budget variance $550 favorable Mc. Graw-Hill/Irwin Volume variance $600 favorable © The Mc. Graw-Hill Companies, Inc. , 2003

Quick Check Actual Fixed Overhead Incurred Fixed Overhead Budget $14, 800 Budget variance $350 unfavorable Mc. Graw-Hill/Irwin $14, 450 Fixed Overhead Applied SH × FR 2, 100 hours × $7. 00 per hour $14, 700 Volume variance $250 favorable © The Mc. Graw-Hill Companies, Inc. , 2003

Fixed Overhead Variances – A Closer Look Budget Variance Volume Variance Results from paying more or less than expected for overhead items. Results from operating at an activity level different from the denominator activity. Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

Fixed Overhead Variances Cost $9, 000 budgeted fixed OH Mc. Graw-Hill/Irwin d a e h ts r c e u v d o ro d p e Fix d to lie p ap 3, 000 Hours Expected Activity Volume © The Mc. Graw-Hill Companies, Inc. , 2003

Fixed Overhead Variances Cost { $550 Favorable Budget Variance Mc. Graw-Hill/Irwin $9, 000 budgeted fixed OH $8, 450 actual fixed OH d a e h ts r c e u v d o ro d p e Fix d to lie p ap 3, 000 Hours Expected Activity Volume © The Mc. Graw-Hill Companies, Inc. , 2003

Fixed Overhead Variances Cost $600 Favorable Volume Variance { $550 { Favorable Budget Variance Mc. Graw-Hill/Irwin 3, 200 machine hours × $3. 00 fixed overhead rate $9, 600 applied fixed OH $9, 000 budgeted fixed OH $8, 450 actual fixed OH d a e h ts r c e u v d o ro d p e Fix d to lie p ap 3, 000 Hours Expected Activity Volume 3, 200 Standard Hours © The Mc. Graw-Hill Companies, Inc. , 2003

Volume Variance – A Closer Look Volume Variance Results when standard hours allowed for actual output differs from the denominator activity. Unfavorable when standard hours < denominator hours Mc. Graw-Hill/Irwin Favorable when standard hours > denominator hours © The Mc. Graw-Hill Companies, Inc. , 2003

Overhead Variances and Underor Overapplied Overhead Cost In a standard cost system: Unfavorable variances are equivalent to underapplied overhead. Favorable variances are equivalent to overapplied overhead. The sum of the overhead variances equals the under- or overapplied overhead cost for a period. Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

CONTOH LAINNYA DARI FLEXIBLE BUDHET Data for manufacturing Overhead of Tiagaroda Company are given below. lexible Budget at various level of activity (hours) Cost Formula Direct Labor Activity ( Hours). Overhaed Cost Per direct labor hours 10. 000 12. 000 14. 000 16. 000 Variable Overhead cost Utilitties $ 3, 00 30. 000 36. 000 42. 000 48. 000 Indirect labor 1, 50 15. 000 18. 000 21. 000 24. 000 Suplies. 2, 50. 25. 000 30. 000 35. 000 40. 000 Total Variavel overhead cost $ 7, 00 70. 000 84. 000 98. 000 112. 000 Fixed Overhead cost Depreciation 18. 000 Insurance 33. 000 Supervisor 19. 000 Total Fixed Overhead Cost 70. 000 70. . 000 Total Overhead Cost 140. 000 154. 000 168. 000 182. 000 Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

Four hours of direct labor time are required per unit product. The Tigaroda Coy has set demonitory activity for coming priod at 14. . 000 direct labor (DLHs) or 3. 500 units. Assumse the following actual results for the priod. - Number of units produced 3. 625 units. - Standard direct labors (DLHs) allowed 14. 500 jam - Actual direct labor hours 14. 800 jam - Actual fixed overhead cost $ 72. 000 - Actual variable overhead cost $ 104. 000 Required: a. Compute predetermined over rate (POR) an break it down into “ variable and fixed cost elements” b. Analyze the $. . . . ? Under or over applied Overhead. c. Compute the four variance of Overhead. JAWAB: Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

POR tingkat denomitory activity 14. 000 DLH. POR dalam DLHs =$ 168. 000/14. 000 = $ 12 DLHs Elemen variabel = 98. 000/14. 000 = $ 7 DLH, jadi elemen tetap $ 12 - $ 7 = $ 5 DLH B. Analisis under or over applied dari overhead. Total Overhead aktual = $ 72. 000 + $ 104. 000 = $ 176. 000 Standard DLH 14. 500 x $12 dlh = $ 174. 000 Overhead under applied $ 2. 000 Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

Four FOH Variance. Overhead Fixed variance. 1. Budget variance= Actual fixed FOH Flexible budget $ 72. 000 –(Dominotory axtivity x elements fixed) = $ 72. 000 - ($ 14. 000 x $5) = $ 2. 000 UF Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

2) Volume variance: = (Fixed portion of the PORx Donomintory activity)- Standard Hours. = $ 5( 14. 000 - 14. 500 ) = $ 2. 500 F. FOH variable variance. 3). Spending variance = (AR –SR) AH = $ 104. 000 – ( 14. 800 x 7) = 104. 000 – 106. 000= $ 2. 000 UF 4). Eficiency = SR(AH-SH) = $7 ( 14. 800 - 14. 500) = $ 2. 100 UF Mc. Graw-Hill/Irwin © The Mc. Graw-Hill Companies, Inc. , 2003

3. Rekapitulasi Varians: Fixed FOH variance. - Budget variance - Volume variance Variable FOH variance. - Spending variance - Efficeincy variance Total Variance Mc. Graw-Hill/Irwin $ 2. 000 UF 2. 500 F 2. 000 UF 2. 100 UF $ 3. 600 UF © The Mc. Graw-Hill Companies, Inc. , 2003