Direct materials used Direct manufacturing labor costs Plant energy costs Indirect manufacturing labor costs Indirect

manufacturing labor costs Other indirect manufacturing costs Other indirect manufacturing costs Marketing, distribution, and customer-service costs Marketing, distribution, and customer-service costs Administrative costs

147,600 38,400 2,000 14,000 19,000 11,000 14,000 128,000 48,000 56,000

V V V V F V F V F F

Total Direct Material Inventory Total Cost Finished Good Inventory Total Units Revenue Sales per unit

246000 452,000 33174 123000 594000 6.61 0.78 89826

Operating Income

142,000

Yeast Flour Packaging materials Depreciation on ovens Depreciation on mixing machines Rent on factory building Fire insurance on factory building Factory utilities Finishing department hourly laborers Mixing department manager Materials handlers in each department Custodian in factory Night guard in factory Machinist (running the mixing machine) Machine maintenance personnel in each department Maintenance supplies for factory Cleaning supplies for factory

Direct and Variable Cost Direct and Variable Cost Direct and Variable Cost Indirect and Fixed Cost Indirect and Fixed Cost Indirect and Fixed Cost Indirect and Fixed Cost Indirect and Variable Cost Direct and Fixed Cost Direct and Fixed Cost Direct and Fixed Cost Indirect and Fixed Cost Indirect and Fixed Cost Direct and Variable Cost Indirect and Fixed Cost Indirect and Fixed Cost Indirect and Fixed Cost

A B C D E F G H

Variable Indirect Variable Cost Direct Variable Cost Fixed Cost Indirect Fixed Cost Indirect Variable Cost Indirect Fixed Cost Indirect Fixed Cost

Plan A Plan B Plan C

10 cents per minute 240 minute- $15 and 8 cents thereafter 510 minutes-$22 and 5 cents thereafter

Fixed Cost Variable Cost Total Cost

1600 1400 3000

Indirect and Variable Cost

Indirect and Fixed Cost

100 minutes

240 minutes 540 minutes 10 24 54 15 15 39 22 22 23.5

Direct Material Direct Labor Indirect Cost Administrative Cost Marketing Exp Selling Exp Edu Total Cost

3000 1000 1000 500 1500 500 500

1500 500 500 500 1500 500 500

Revenue COGS Gross Profit SGA Expense EBIT Interest Expense NI

10,000 2500 7,500 3000 4,500 200 4,300

Assets Inventory Cash Total Assets Liabilites Owners Equity Liabilties & Equities

2500 9800 12300 8000 4300 12300

Normal Construction period Direct material costs Direct labor costs Direct labor-hours Indirect Cost Total Cost

Laguna Model

Mission Model

FebJune 2011 MayOct 2011 106760 127550 36950 41320 960 1050 48000 52500 191710 221370

Budgeted Indirect Cost DLH 50

Actual 40 2nd Quarter 500

Normal Direct Manufacturing Labor Hour Actual Direct Material Cost Actual Direct Manufacturing Labor Budgted Variable Overhead Cost Budgted Fixed Manufacturing Overhead Cost Total Cost Cost/Pool 0.5 7.5 16 12 10500

3750 4000 3000 10500 21250 42.5 42000 56

Actual Construction period Direct material costs Direct labor costs Direct labor-hours Indirect Cost Total Cost

Laguna Model

Mission Model

FebJune 2011 MayOct 2011 106760 127550 36950 41320 960 1050 38400 42000 182110 210870

3rd Quarter 150

Indirect 6760 2134 8894

1125 1200 900 10500 13725 91.5

Direct 20500 1500 30894 77.235

Total Cost Cost/unit

1784