1 NCKU EMBA 習題解答 Chapter 5 Value Chain Analysis & Activity-Based Management (Absorption & variable costing, Pay-off table) 2006/11/19

(a). Budgeted Cost Budgeted Activity Cost per Unit of Activity Purchasing & materials handling $675,000÷900,000＝$0.75 Setup$700,000÷1,400＝$500 Machine operations $960,000÷12,000＝$80 First unit inspection $50,000÷800＝$62.5 Packaging$250,000÷312,500＝$0.8

3 Standard Product A Standard Product B Specialty Product Direct materials $900,000$600,000$800,000 Purchasing & handling $0.75 x 400,000 = 300, , , , ,000 Setup $500 x 300 = 150,000 80,000 80, , ,000 Machine operations $80 x 6,000 = 480, , , , ,000 First unit inspection $62.5 x 100 = 6,250 5,000 5,000 37,500 37,500 Packaging $0.8 x 150,000 = 120,000 80,000 80,000 40,000 40,000 Total$1,956,250$1,230,000$1,637,500 Units ÷ 150,000 ÷ 100,000 ÷ 50,000 Unit cost $13.042$12.3$32.75

4 (c). Activity Budgeted Activity Cost Assigned Activity Cost Purchasing & handling $ 675, ,000 x $0.75 ＝ $ 675,000 Setup 700, ,000 1,360 x $500 1,360 x $500＝ 680, ,000 Machine operation 960, ,000 11,000 x $80 11,000 x $80＝ 880, ,000 Inspection 50,000 50, x $ x $62.5＝ 48,750 48,750 Packaging 250, , ,000 x $0.8 ＝ 240, ,000 Total $ 2,635,000 $ 2,523,750 閒置產能差異 $ 111,250 不利 400,000(kg) + 300, ,000 Product A Product B Specialty

(a). Task Chair Desk Chair Executive Chair Value-added activities ： Molding Dpt. Operations Molding Dpt. Operations $ 500 $ 600 $ 800 Fabric Dpt. Operations Fabric Dpt. Operations ,000 1,000 Assembly Dpt. Operation Assembly Dpt. Operation ,000 1,000 Packing Dpt. Operation Packing Dpt. Operation Total Total $ 1,900 $ 2,550 $ 3,300 Non-value-added activities ： Molding Dpt. Setup Molding Dpt. Setup $ 400 $ 500 $ 600 Movement to Fabric Dpt. Movement to Fabric Dpt Fabric Dpt. Setup Fabric Dpt. Setup Movement to Assembly Dpt. Movement to Assembly Dpt Movement to Packing Dpt. Movement to Packing Dpt Total Total ,090 1,090 Total activity cost $ 2,750 $ 3,525 $ 4,390

6 (b). Task Chair Desk Chair Executive Chair Cost per chair ： Direct materials Direct materials$1,500/100 = 15 $ 17 $ 25 Value-added activities Value-added activities$1,900/100 = Non-value-added activities Non-value-added activities $ 850/100 = Total $ 42.5 $ $ 68.9

7 (c). Task Chair Desk Chair Executive Chair Current setups ： Annual production Annual production10,0005,0004,000 Batch size Batch size ÷ 100 Number of setup Number of setup Increased setup size ： Annual production Annual production10,0005,0004,000 Batch size Batch size ÷ 500 Number of setup Number of setup Decrease in number Setup costs per batch ： Molding Molding $ 400 $ 500 $ 600 Fabric Fabric Total Total Decrease in setups Decrease in setups X 80 X 40 X 32 Potential savings $ 44,000 $ 27,000 $ 25,280 $ 96,280

8 (d). Task Chair Desk Chair Executive Chair Total Total movement & setup cost per batch setup cost per batch $ 850 $ 975 $ 1,090 Number of setups X 100 X 50 X 40 Annual cost savings $ 85,000 $ 48,750 $ 43,600 $ 177,350 $ 177,350

9 Variable & absorption costing Contribution Format (variable) SalesXXX Less variable expense ： Cost of goods sold Cost of goods sold(XXX) Selling Selling(XXX) Administrative Administrative(XXX) Contribution margin $ XXX Less fixed expense ： Manufacturing Manufacturing(XXX) Selling Selling(XXX) Administrative Administrative(XXX) Net income $ XXX Functional Format (absorption)SalesXXX Less cost of goods sold (XXX) Gross profit $ XXX Less operating expense ： Selling Selling(XXX) Administrative Administrative(XXX) Net income $ XXX

10 JuneJulyAugust Beginning inventory 001,500 Production4,0004,0004,000 Total available 4,0004,0005,500 Sales4,0002,5005,500 Ending inventory Ending inventory01,5000 產 = 銷 產 > 銷 產 < 銷 Nutech Company Selling price $ 30 per unit Variable manufacturing cost $ 16 per unit Fixed Manufacturing cost $ 8,000 per month Variable selling & administrative expenses $ 3 per unit Fixed selling & administrative expenses $ 10,000 per month 投入資源 存貨 費用 銷貨成本

11 Absorption costing JuneJulyAugust Sales($30/unit) $ 120,000 $ 75,000 $ 165,000 Cost of goods sold ($18/unit) (72,000) (72,000) (45,000) (45,000) (99,000) (99,000) Gross profit $ 48,000 $ 30,000 $ 66,000 Selling & administrative expense ： variable($3/unit) variable($3/unit) $ 12,000 $ 7,500 $ 16,500 Fixed Fixed 10,000 10,000 Total (22,000) (22,000) (17,500) (17,500) (26,500) (26,500) Net income Net income $ 26,000 $ 12,500 $ 39,500 Variable costing Sales($30/unit) $ 120,000 $ 75,000 $ 165,000 Less variable expense ： Cost of goods sold($16/unit) Cost of goods sold($16/unit) $ 64,000 $ 40,000 $ 88,000 Selling & administrative ($3/unit) Selling & administrative ($3/unit) 12,000 12,000 7,500 7,500 16,500 16,500 Total Total (76,000) (76,000) (47,500) (47,500) (104,500) (104,500) Contribution margin $ 44,000 $ 275,000 $ 60,500 Less fixed expense ： Manufacturing overhead Manufacturing overhead $ 8,000 Selling & administrative Selling & administrative 10,000 10,000 Total Total (18,000) (18,000) Net income $ 26,000 $ 9,500 $ 42,500

12 OctoberNovemberDecember Beginning inventory 001,000 Production4,0005,0003,200 Total available 4,0005,0004,200 Sales4,0004,0004,000 Ending inventory Ending inventory01, 產 = 銷 產 > 銷 產 < 銷

13 Absorption costing October Sales($30/unit) $ 120,000 Cost of goods sold ： Beginning inventory Beginning inventory $ 0 Variable manufacturing costs Variable manufacturing costs 64,000 64,000 Fixed manufacturing costs Fixed manufacturing costs 8,000 8,000 Less ending inventory Less ending inventory 0 Cost of goods sold Cost of goods sold (72,000) (72,000) Gross profit $ 48,000 Selling & administrative expense ： variable($3/unit) variable($3/unit) $ 12,000 Fixed Fixed 10,000 10,000 Total (22,000) (22,000) Net income Net income $ 26,000 Variable costing October Sales($30/unit) $ 120,000 Less variable expenses ： Cost of goods sold Cost of goods sold $ 64,000 Selling & administrative Selling & administrative 12,000 12,000 Total Total (76,000) (76,000) Contribution margin $ 44,000 Less fixed expenses ： (72,000) (72,000) Manufacturing overhead Manufacturing overhead $ 8,000 Selling & administrative Selling & administrative 10,000 10,000 Total Total (18,000) (18,000) Net income Net income $ 26,000

14 Absorption costing November Sales($30/unit) $ 120,000 Cost of goods sold ： Beginning inventory Beginning inventory $ 0 Variable manufacturing costs Variable manufacturing costs 80,000 80,000 Fixed manufacturing costs Fixed manufacturing costs 8,000 8,000 Less ending inventory Less ending inventory (17,600) (17,600) Cost of goods sold Cost of goods sold (70,400) (70,400) Gross profit $ 49,600 Selling & administrative expense ： variable($3/unit) variable($3/unit) $ 12,000 Fixed Fixed 10,000 10,000 Total (22,000) (22,000) Net income Net income $ 27,600 Variable costing November Sales($30/unit) $ 120,000 Less variable expenses ： Cost of goods sold Cost of goods sold $ 64,000 Selling & administrative Selling & administrative 12,000 12,000 Total Total (76,000) (76,000) Contribution margin $ 44,000 Less fixed expenses ： (72,000) (72,000) Manufacturing overhead Manufacturing overhead $ 8,000 Selling & administrative Selling & administrative 10,000 10,000 Total Total (18,000) (18,000) Net income Net income $ 26,000 ÷ $ 8,000 ÷ 5000 = $ 1.6 $ 1.6 X 1000 = $ 1600

15 Absorption costing December Sales($30/unit) $ 120,000 Cost of goods sold ： Beginning inventory Beginning inventory $ 17,600 Variable manufacturing costs Variable manufacturing costs 51,200 51,200 Fixed manufacturing costs Fixed manufacturing costs 8,000 8,000 Less ending inventory Less ending inventory (3,700) (3,700) Cost of goods sold Cost of goods sold (73,100) (73,100) Gross profit $ 46,900 Selling & administrative expense ： variable($3/unit) variable($3/unit) $ 12,000 Fixed Fixed 10,000 10,000 Total (22,000) (22,000) Net income Net income $ 24,900 Variable costing December Sales($30/unit) $ 120,000 Less variable expenses ： Cost of goods sold Cost of goods sold $ 64,000 Selling & administrative Selling & administrative 12,000 12,000 Total Total (76,000) (76,000) Contribution margin $ 44,000 Less fixed expenses ： (72,000) (72,000) Manufacturing overhead Manufacturing overhead $ 8,000 Selling & administrative Selling & administrative 10,000 10,000 Total Total (18,000) (18,000) Net income Net income $ 26,000 ÷ $ 8,000 ÷ 3,200 = $ 2.5 $ 1.6 X $ 2.5 X 200 = $ 1,100

16 Expected Value 在事件發生之前，我們所能預估此事件發生的可能之值，因此假設某事件發生之 機率為 Pi ，若該事件發生即可得到 Mi 元，則此事件的期望值則定義為 : Pi*Mi 元 投擲一顆骰子，若猜中點數即可獲得 50 元，每玩一次需押注 10 元，令 X 為出現的 點數，則 X 之期望值 E(X) = 50 x 1/6 + (-10) x 5/6 = 0

17 Pay-off table 小王假日時都會在棒球場外販賣熱狗，熱狗每根成本 $5 ，售價 $10 ，但如果當天 無法出售的話，小王會把剩餘的熱狗報廢掉，通常熱狗的銷量並不固定。 依據小王估計，有 50% 的機率可以賣掉 1,500 根，有 30% 的機率可以賣掉 2,500 根，有 20% 的機率可以賣掉 3,500 根。 可能發生的事件 選擇的方案選擇的方案 1,500 根 (50%)2,500 根 (30%)3,500 根 (20%) 期望值 1,500 根 $ 5 x 1,500 = 7,500 $ 5 x 1,500 = 7,500 $ 5 x 1,500 = 7,500 $ 7,500 2,500 根 $ 5 x 1,500 - $ 5 x 1,000 = 2,500 $ 5 x 2,500 = 12,500 $ 5 x 2,500 = 12,500 $ 7,500 3,500 根 $ 5 x 1,500 - $ 5 x 2,000 = (2,500) $ 5 x 2,500 – $ 5 x 1,000 = 7,500 $ 5 x 3,500 = 17,500 $ 4,500 ** 7,500 x ,500 x ,500 x 0.2 = 7,500 2,500 x ,500 x ,500 x 0.2 = 7,500 (2,500) x ,500 x ,500 x 0.2 = 4,500 完美資訊價值 (Expected Value of Perfect Information) = 7,500 x ,500 x ,500 x 0.2 – 7,500 = 3,500