Case Study Jumping Flash Pty Ltd is an innovative organisation that produces environmentally friendly pumps for water management. The design of this pump is unique and represents an efficient and environmentally friendly system that may be used on any mine site. These pumps combine positive features of economy, efficiency and innovation. The company has just completed its second year of operations. You are now employed as the management accountant for Jumping Flash Pty Ltd and you have been requested to produce a performance report (using Excel) and the calculate all the relevant variances. Information The following details are available: 1. SALES AND SALES REVENUE Jumping Flash Pty Ltd Units and revenue details for the period 01 July - 30 September 2018 Sales (units) Sales revenue Actual Master (Fixed) Budget 16,500 15,000 $ $ 5,362,500 5,250,000 Note: Both these production levels are within the relevant range. 2. STANDARD COST DETAILS Jumping Flash Pty Ltd Standard cost schedule - Manufacturing costs Per unit Usage Direct material 7 kilos Per unit Rate $5 per kilo Per unit $ 35.00 Direct labour 8 hours $10 per hour 80.00 Variable manufacturing overhead 8 hours $2 per hour 16.00 Fixed manufacturing overhead 8 hours $4 per hour 32.00
Case Study Jumping Flash Pty Ltd is an innovative organisation that produces environmentally friendly pumps for water management. The design of this pump is unique and represents an efficient and environmentally friendly system that may be used on any mine site. These pumps combine positive features of economy, efficiency and innovation. The company has just completed its second year of operations. You are now employed as the management accountant for Jumping Flash Pty Ltd and you have been requested to produce a performance report (using Excel) and the calculate all the relevant variances. Information The following details are available: 1. SALES AND SALES REVENUE Jumping Flash Pty Ltd Units and revenue details for the period 01 July - 30 September 2018 Sales (units) Sales revenue Actual Master (Fixed) Budget 16,500 15,000 $ $ 5,362,500 5,250,000 Note: Both these production levels are within the relevant range. 2. STANDARD COST DETAILS Jumping Flash Pty Ltd Standard cost schedule - Manufacturing costs Per unit Usage Direct material 7 kilos Per unit Rate $5 per kilo Per unit $ 35.00 Direct labour 8 hours $10 per hour 80.00 Variable manufacturing overhead 8 hours $2 per hour 16.00 Fixed manufacturing overhead 8 hours $4 per hour 32.00
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 13E
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Transcribed Image Text:Case Study
Jumping Flash Pty Ltd is an innovative organisation that produces environmentally friendly pumps
for water management. The design of this pump is unique and represents an efficient and
environmentally friendly system that may be used on any mine site. These pumps combine positive
features of economy, efficiency and innovation. The company has just completed its second year of
operations.
You are now employed as the management accountant for Jumping Flash Pty Ltd and you have
been requested to produce a performance report (using Excel) and the calculate all the relevant
variances.
Information
The following details are available:
1. SALES AND SALES REVENUE
Jumping Flash Pty Ltd
Units and revenue details for the period 01 July - 30 September 2018
Sales (units)
Sales revenue
Actual
Master (Fixed) Budget
16,500
15,000
$
$
5,362,500
5,250,000
Note: Both these production levels are within the relevant range.
2. STANDARD COST DETAILS
Jumping Flash Pty Ltd
Standard cost schedule - Manufacturing costs
Per unit
Usage
Direct material
7 kilos
Per unit
Rate
$5 per kilo
Per unit
$
35.00
Direct labour
8 hours
$10 per hour
80.00
Variable manufacturing overhead
8 hours
$2 per hour
16.00
Fixed manufacturing overhead
8 hours
$4 per hour
32.00
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