第1页共6页编号：时间：2021年x月x日书山有路勤为径，学海无涯苦作舟页码：第1页共6页IntroductionTricolplcacompanywhomakesarangeoffurnitureandkitchenware.Andoneofitsmostpopularproductsisthe‘Zupper’expandabletable.Thepurposeofwritingthisreportistodothevarianceanalysis,projectevaluationandtocomparethebudgetandactualdatabyusingthetechnique.FindingsPartAPossibleReasonforVariances1.MaterialDirectMaterial–Total-￡2,400Fmadeup:DirectMaterialUsage–￡20000F(Levelofsignificance–usage/totalbudgetedMaterialcosts=8,000/64,000=12.5%>3%,shouldbereviewed)2000kglessmaterialsareusedthanbudgetedfortheactuallevelofproduction.Possiblereasonmaybeusingthehigher-gradematerialwithlesswastage.Orthenewmachineryuselessmaterialsandincurslesswstage.DirectMaterialPrice–￡5,600A(5,600/64,000=8.75%>3%)Itis￡1perkgmoreexpensivethanplannedPossiblereason:Newmaterialsupplierdoesnotgivediscountsformaterials.Hither-gradematerialshavebeenusedwhichismoreexpensive.2.LabourDirectLabourTotal-￡6,400ADirectLabourRate–￡3,520A(3,520/28,800=12.2%>3%)Onaverage,theactuallabourrateis￡1/hourhigherthanbudgetedPossiblereason:Thewagesettlementishigherthanexpected第2页共6页第1页共6页编号：时间：2021年x月x日书山有路勤为径，学海无涯苦作舟页码：第2页共6页Thenewmachinerequirestrainingssothatovertimerequiredmorethanexpected.DirectlabourEfficiency-￡2000A>3%)4.16%Actually,morethan200labourhourshavebeenusedthanbudgeted.Possiblereason:Newmachineryrequiresmorehoursfortraining..Humanresourceissues–theskilledoperativesisnotenough.3．TotalOverhead-￡600FRateis4.70%UnpredictedincreaseininsuranceandAdministrationcostsPossiblereason:Newmachinerybringsmoreexpensiveinsurance,highermaintenanceandadditionaladministrativecosts.PartB1.Keyassumptionsmade:a)Thereisnotaxationandinflation.b)Assumedthatthereisnovarygivenreturnmarketrate.c)Thetotalcostoftheprojectwillbepayableatthestartd)Theexpectedrevenuefromtheinvestment–thisistheexpectedNetCashFlowafterdeductionofallrelevantcosts2.PaybackPaybackinthiscaseis4.125years(totalinvestment-returnperiodisfiveyears).Sothecompanycangetbacktheinvestment.TheNetPresentValueis￡-64，800.Itindicatesthattheprojectdoesnotappeartobefinanciallyviable.ConclusionPartBThisprojectisavailablebecausethepaybackis4.125years.ButtheNetPresentValue(NPV)isnegative.Sotheprojectisnotavailable.However,weshouldusetheconclusionoftheNetPresentValuebecausetheNetPresentValue(NPV)consideredthetimevalueofmoney.第3页共6页第2页共6页编号：时间：2021年x月x日书山有路勤为径，学海无涯苦作舟页码：第3页共6页RecommendationsPartARecommendationsformanagementaction:1.Allthevariancesshouldbeanalysisbecauseallofthemareabove3%,thelevelofsignificance.2.Particularly,thedirectlabourvariancesneedfurtherinvestigation–whyisthecompanypayingahigherwageratebutthelabourproductivityislowerthanplanned.PartB1.Toconsidertheeffectofthenewfacilitiesoncompany’sownstaff–intermsofemploymentandredeploymentopportunities.2.Toconsideranychangesinanyotherareas,likesocial,political,economic,legalandtechnologicalfactors.3.Whetheritispossibleforthecompanytoraisethesufficientfunds–toconsiderifthecurrentcashflowpositioncansupportsuchaninvestment.第4页共6页第3页共6页编号：时间：2021年x月x日书山有路勤为径，学海无涯苦作舟页码：第4页共6页AppendixPartA1.Table1TricolplcFlexedBudgetforJuneTricolplcFlexedBudgetForJuneFixedBudget2,000unitsFlexedBudget1,600unitsActual1,600unitsVaria...
