Académique Documents
Professionnel Documents
Culture Documents
Manufacturing Process
Materials used: Colored papers, art papers, glue, paper hardboards,
poster paper, lace and colored stone.
Tools: Needle, bookbinding awl, anti-cutter, scissors, ruler and thread.
Step 1: Cutting and making signatures
Step 2: Cutting hard covers
Step 3: Pierce
Step 4: Sewing.
Step 5: Decorate.
Work Details Calculations Labor Hours No. of
Diaries
Produced
Number of 4
workers
Labor 8
Hours/Day
Maximum Production
Labor 8 hours * 6 48
hour/week Days
Labor 8 hours * 24 192
hours/month Days
Total labor 8 Hours * 24 768
Hours Days * 4
available Labors
Diaries
Produced/H
our
Total number 768 Hours* 192
of Diaries 0.25
Produced/M
onth
Details Input/Unit Per Unit cost (TK) Total Cost
2 pieces of paper 1 piece=8.27 * 5 10
boards 5.85
Art paper 4 pieces 20 80
Printed Color 1 piece 20 20
Paper
Poster Paper 1 piece 10 10
Lace 1 piece 30 30
Total Direct 150
Material Cost of 1
unit
Total Direct 28800
Material Cost of
192 units
Direct Labor No. of Labor Hours/Unit Cost/ DLH(Tk) Total
Cost/Unit
Labor 4 4 20 80
Total Direct 15360
Labor Cost
MOH COST(TK)
Rent 5000
Water Bill 300
Electricity Bill 600
Needle 10
Thread 30
Color Stone 20
Glue 30
Ruler 20
Total MOH 6010
Support and Selling cost
Prime and Conversion Cost
Prime Cost=Direct Material Cost + Direct
Labor Cost
=28800+15360
=44160
Conversion Cost = Direct labor cost +
Manufacturing overhead cost
= 15360+6010
=21370
Determination of Full Cost
Variable cost Amount (Tk) Total Amount (Tk)
Direct material 28800
Direct labor 15360
Packaging 200
Telecommunication 350
Thread 30
Color Stone 20
Glue 30
Total Variable Cost 44790
Fixed cost
Rent 5000
Water Bill 300
Electricity Bill 600
Needle 10
Ruler 20
Administrative cost 1000
Distribution cost 1200
Total fixed cost 8130
Total full cost 52920
Amount (Tk) Amount (Tk)
Direct cost
Paper boards (192*10) 1920
Art paper (192*80) 15360
Printed Paper (192*20) 3840
Poster Paper (192*10) 1920
Lace (192*30) 5760
Simple Costing System
COGS (33120)
Indirect Cost
Thread (30)
Rent (5000)
Distribution (1200)
Packaging (200)
Profit 1310
Change of Operating Revenue
Master Budget
Schedule: 1 Revenue Budget
units Selling price per Total revenues
unit
MOH 6010
Total MOH 6010
Direct Material
8532.56
Details Taka Taka
Beginning Finished 0
Goods Inventory
MOH 6010
(8210/144)
=67.14/300
=22.38%
=Tk. 36684.53
Margin of Safety
Margin of Safety= Budgeted Revenue-Breakeven Revenue
=43200-36684.53
=Tk.6515.47
=6515.47/43200
= 15.08%
Degree of Operating Leverage
Degree of Operating Leverage = Contribution
Margin/ Operating Income
= 9668.16/ 1458.16
= 6.63 times