Preparing Financial Forecasts Report Essay

Getting ready Financial Forecasts Report Essay Getting ready Financial Forecasts Report Essay [pic] [pic] HND program, Sichuan University 2006-12-21 Section A Presentation This report alludes to show the differences between the Flexed Budget and Actual outcomes. After collaboration, we will comprehend the outline of the organization’s current circumstance. So as to discover the issues and tackle them, I examined them underneath. Here are the point by point data about the materials difference, work change and overhead fluctuation. Also, I will offer out the guidance of my assessment toward the finish of this report. |Tricol plc Flexible financial plan | | |Original financial plan |Flexed spending plan |Actual results |Variance | | |A/F | | |2000 units |1600 units |1600 units[1] | |Direct material |ï ¿ ¡80000[2] |ï ¿ ¡64000[5] |ï ¿ ¡61600 |ï ¿ ¡2400 |F | |Direct work |ï ¿ ¡36000[3] |ï ¿ ¡28800[6] |ï ¿ ¡35200 |ï ¿ ¡Ã¯ ¼Ë†6400ï ¼â€° |A | |Variable creation overheads |ï ¿ ¡4000[4] |ï ¿ ¡3200[7] |ï ¿ ¡3200 |0 | | |Depreciation |ï ¿ ¡1500 | |ï ¿ ¡1500 | |Fixed overheads | |Total cost of creation | |ï ¿ ¡104200 |ï ¿ ¡108600 |ï ¿ ¡Ã¯ ¼Ë†4400ï ¼â€° |A | [1] Flexed spending sum is 80% of the objective sum [2]ï ¿ ¡10ãâ€"4 kgãâ€"2,000ï ¼ 80,000 [3]ï ¿ ¡9ãâ€"2ãâ€"2,000ï ¼ 36,000 [4]ï ¿ ¡2ãâ€"2,000ï ¼ 4,000 [5]ï ¿ ¡10ãâ€"4 kgãâ€"1,600ï ¼ 64,000 [6]ï ¿ ¡9ãâ€"2ãâ€"1,600ï ¼ 28,800 [7]ï ¿ ¡2ãâ€"1,600ï ¼ 3,200 Material: Direct material all out difference = (standard units of real production*standard cost)- (genuine quantity*actual cost) = (1600*4*10) - 61600 =ï ¿ ¡2400(F) Direct material use change =standard price*(standard unit of genuine creation - real quality) =10*(1600*4-5600) =ï ¿ ¡8000(F) Direct material value difference =actual quantity*(standard cost †genuine cost) =5600*(10-11) =ï ¿ ¡-5600(A) Material complete Variance rate = 2400/64000 *100% =3.75% Material use difference rate = 8000/64000*100% =12.5% Material value difference rate =5600/64000*100% =8.75% Work: Direct work all out fluctuation = (standard long stretches of real production*standard rate ph)- (genuine hours*actual rate ph) = (1600*2*9)- 35200 =ï ¿ ¡-6400(A) Direct work productivity change =standard rate ph*(standard long periods of genuine creation †real hours) =9*(1600*2-3520) =ï ¿ ¡-2880(A) Direct work rate fluctuation =actual hours*(standard rate ph-genuine rate ph) =3520*(9-10) =ï ¿ ¡-3520(A) Work absolute change rate =6400/28800*100%=22.22% Work productivity change rate =2880/28800*100%=10% Work rate fluctuation percentage=3520/28800*100% =12.22% Overhead: Absolute overhead change =total standard overhead for real creation all out real overheads = (7.125*1600)- (3200+2200+1500+2400+2500) =11400-11800 =ï ¿ ¡-400(A) Overhead assimilation rate =total planned overhead/all out planned action level = (1600*2+2000+2200+1500+2500)/1600 =ï ¿ ¡7.125 per unit