Hamsta_Direct Labour and FOH

8/14/2019 Hamsta_Direct Labour and FOH

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Direct Labor Budget

Factory Overhead Budget


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y g

Sales

Budget

Sales

Budget

Budgets RelationBudgets Relation


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Sales

Budget

Sales

BudgetProduction BudgetProduction Budget

Income Statement BudgetsIncome Statement Budgets

Expected units of sales

+ Desired units in ending inventory

- Estimated units in beginning inventoryTotal units to be produced



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Sales

Budget

Sales



Direct MaterialsPurchases Budget


Materials needed for production

+ Desired ending materials inventory

- Estimated beginning materials inventoryDirect materials to be purchased


Materials needed for production = unit to produced x standard usage rate


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Sales

Budget

Sales


Direct LaborCost Budget







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Sales

Budget

Sales




Factory OverheadCost Budget







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Sales

Budget

Sales









Cost ofProduction

Cost of

Production



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Sales

Budget

Sales









Cost of GoodsSold Budget

Cost of Goods

Sold Budget

Selling &

Administrative

ExpensesBudget

Selling &

Administrative

ExpensesBudget



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DirectLabor

Budget


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Direct Labor Budget

Provides an estimate of the cost of the directlabor that must be used in the next year.

To prepare the direct labor budget, a company

would use its production budget The direct labor budget enables the personnel

department (HRD) to plan for hiring and

repositioning of employees


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11

Direct Labor Budget

The use of direct labor budget are :

basis to prepare the CoGM and CoGS

basis to to prepare the cash budget

A good direct labor budget helps the firmto avoid emergency hiring, prevent laborshortages, reduce or eliminate the needto lay off workers, etc.


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Factors that must be considered while prepare theDirect Labor Budget

Unit to be produced budget

Time standard (historical/previous experienceor time motion study)

Wage-rate standard (the regulation ornegotiation between firms and employee)

Some of wage-rate system : According time (eq. Rp. 20.000 per hour)

According result/output (eq.Rp. 2000 per unit)

According incentive


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Direct Labor Budget

Direct labor hours per unit

x Labor rate per hour= Direct labor cost perunitx Units to be produced

= Total direct labor cost


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Standar waktu PT.Charisma

1 unit X membutuhkan 0,3 jam

1 unit Y membutuhkan 0,2 jam

Tahapan Produksi

Dept I 50% dari keseluruhan jam kerja langsung

Dept II 30% dari keseluruhan jam kerja langsung Dept III 20% dari keseluruhan jam kerja langsung

lihat hal 150-151


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PT.CharismaDirect Labor Budget

Januari 1985Ket Unit

ProducedTime

standard(hour)

Total Hour Wage-rate(per hour)

Total Paying(Rp)

Januari

Product X 120,000 0.3 36,000 400 14,400,000

Product Y 90,000 0.2 18,000 400 7,200,000

Total - - 54,000 - 21,600,000

Dept I 27,000 400 10,800,000

Dept II 16,200 400 6,480,000

Dept III 10,800 400 4,320,000

Total 54,000 - 21,600,000

h. 152-153


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Exersice

JMBL is preparing its direct labor budget for 2009from the following production budgetQuarter 1 : 20,000 unit Quarter 3 : 35,000 unit

Quarter 2 : 25,000 unit Quarter 4 : 30,000 unit

Each unit require 1.6 hours of direct labor for Q1 and Q2 ,and 1,5 hours for Q3 and Q4

Prepare a direct labor budget for 2009 while wages

rates to be $15 for the first 2 quarters and $16 for quarter

3 and 4 (per hour)


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Energy costs Indirect materials

Indirect labor Equipment repair

and maintenance

Energy costs Indirect materials

Indirect labor Equipment repair

and maintenance

VariableOverhead

Factory Overhead Costs:

Examples

Fixed

Overhead

Factory managers

salaries Plant and equipment

depreciation Plant security guards Insurance and property

taxes for factory

building and equipment

Factory managers

salaries Plant and equipment

depreciation Plant security guards Insurance and property

taxes for factory

building and equipment


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Factory Overhead Budget

= Total variableoverhead+ Budgeted fixedoverhead

Units to be produced

x Variable costs per unit

= Total budgeted overhead


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PT.XYZ

Budget BOP

Tahun

Keterangan TW 1 TW 2 TW 3 TW 4

Unit Produced

FOH Variable

1

2

3

Total FOH Variable

FOH Fixed

1

2

3

Total FOH Fixed

TOTAL FOH

E i


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Exersice

HAMSTA Corp is preparing its manufacturing overhead budget for2009. Relevant data consist of the following

Units to be produced (by quarters) : 10,000 , 12,000 , 14,000 ,16,000

Direct Labor Time is 1.5 hours per unit

Variable Overhead cost per direct labor hour

Indirect material $0.70

Indirect labor $1.2 Maintenance machine $0.50

Fixed overhead costs per quarter :

Supervisory salaries $35,000

Depreciation $16,000

Maintenance plant $12,000

Hamsta_Direct Labour and FOH

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