acca-f2 - absorption costing

calculated in advance using estimated or budgeted figures

we need an estimate of the cost before we can fix a selling price
estimated cost per unit provides a benchmark for control purposes

Management Accountant's Profit Statement (or Operating Statement) takes a different form than that of the Financial Accountant's Income Statement
usually prepared monthly, and its objective is to show whether the profit is higher or lower than that expected, and to list the reasons for any differences

lists all the reasons for any differences in profit (or variances) to end with the actual profit

calculating the budgeted profit for individual months, absorption costing causes a problem when the expected production in a month differs from that used to absorb fixed overheads for the cost card

esempio: product desks
absorbed on a unit basis

dati

4 kg of wood at $3 per kg
4 hours of labor at $2 per hour
variable production overheads of $5 per unit

fixed production overheads are budgeted at $20,000 per month and average production is estimated to be 10,000 units per month

overheads calcolato in base a units non in base alle ore

selling price is fixed at $35 per unit

variable selling cost of $1 per unit and fixed selling cost of $2,000 per month

prepare a cost card using absorption costing
set out budget Profit Statements for the months of January and February

dati calcolati
Variabili
material	4	$3.00	$12.00
lavoro	4	$2.00	$8.00
variabili			$5.00

Fissi
fissi	10,000	$20,000.00	$2.00
totale per unit			$27.00

prezzo vendita			$35.00
utile per unit			$8.00

Venduto
costo venduto			$1.00
costo fisso			$2,000.00

calcolo
Mese	January	February
Production	11,000	9,500
Sales	9,000	11,500

Ricavi	$315,000.00 (9,000 * $35)	$402,500.00 (11,500 * $35)

Production
materiale	$132,000.00 (11,000 * $12)	$114,000.00 (9,500 * $12)
lavoro	$88,000.00 (11,000 * $8)	$76,000.00 (9,500 * $8)
variabile	$55,000.00 (11,000 * $5)	$47,500.00 (9,500 * $5)
fisso	$22,000.00 (11,000 * $2)	$19,000.00 (9,500 * $2)
Totale	$297,000.00	$256,500.00

Utile calcolato	$72,000.00 ($8 * 9,000)	$92,000.00 ($8 * 11,500)
adjustment costi fissi	-2,000.00 ($20,000 - $22,000)	1,000.00 ($20,000 - $19,000)

Utile corretto	74,000.00	91,000.00

Costi venduto	$11,000.00	$13,500.00
Utile netto	$63,000.00	$77,500.00

esempio:
calcolo overheads in base alla ore

dati

budgets on working 80,000 hours per month
fixed overheads of $320,000

April the actual hours worked are 78,000 and the actual fixed overheads are $315,500

risultato

budget → costo fisso $320,000 / ore 80,000 = $4.00 unit
dovrebbero essere quindi → ore 78,000 * $4.00 unit = costo fisso $312,000
reali → costo fisso $315,500 - $312,000 = $3,500 (under-adsorbing)

schema calcolo under-adsorbing / over adsorbing
budget production overheads $320,000	/	ore hours production 80,000	=	overhead aborption rate $4.00
actual hours 78,000	*	overhead aborption rate $4.00	=	calculate production overheads $312,00
actual production overheads $315,500	-	calculate production overheads $312,00	=	+ (under-adsorbing) - (over adsorbing) $3,500

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