Extras Flashcards
Machine utilisation formula
Production requirement / maximum total machine capacity. X. 100%
Wastage %
£ X 100 / 100 - wastage %)
Production capacity - materials
Total materials used / kilo per unit
Production capacity - labour hrs
Mins / 60 mins = ?
Labour hrs / ?
Monthly budget - Variable production overheard
1) Mins / 60 mins X No of labour hours = x
2) no of labour hours / x (point 1) = xc
3) VPO / (units produced (p.a) / x (point 1)) X
4) answer from 3 X xc
Selling price increases/ decreases
Or
Remove price increase/decrease
Increase —-> Selling price X (100+increase) / 100%
Decrease —-> selling price X. (100-percentage) / 100%
Or
Remove increase —-> selling price X 100 / (100+increase)
Remove decrease—->selling price X 100 / (100-decease)
Fixed / Variable cost formula
Total Cost = Fixed Cost + (Variable Costs X units produced)
Stepped Cost formula
1) sales volume (original budget) / units per step (in notes) =no of steps
2) total cost (original budget) / no of steps = cost per step
3) actual volume / units per step (in notes) = no of steps (round up) X cost per step (answer 2)
Time series analysis formula
Last figure - first figure / no of changes (NOT YEARS)
Linear regression formula
Y = M x X + C
Y - forecast
M - increase
X - no of time changes
C - starting value
Seasonal variations formula
Y = T + S
Y - actual data
T - trend
S - seasonal variation
Index calculation
Forecast price = historical price X (expected/forecast index / historical index)
Where to allocate wastage of materials DURING production
Materials USAGE budget
Where to allocate wastage of materials BEFORE production?
Materials purchase budget
What is a budget
A financial plan for an organisation prepared before the period starts
