Hamsta_direct Labour And Foh

Direct Labor Budget Factory Overhead Budget

Budgets Relation

Sales Sales Budget Budget

Income Budgets Statement Relation Budgets

Sales Sales Budget Budget

Production Budget

Expected units of sales + Desired units in ending inventory

- Estimated units in beginning inventory Total units to be produced

Income Budgets Statement Relation Budgets

Sales Sales Budget Budget

Production Budget Direct DirectMaterials Materials Purchases PurchasesBudget Budget

Materials needed for production + Desired ending materials inventory

- Estimated beginning materials inventory Direct materials to be purchased

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

Income Budgets Statement Relation Budgets

Sales Sales Budget Budget

Production Budget Direct DirectMaterials Materials Purchases PurchasesBudget Budget Direct DirectLabor Labor Cost CostBudget Budget

Income Budgets Statement Relation Budgets

Sales Sales Budget Budget

Production Budget Direct DirectMaterials Materials Purchases PurchasesBudget Budget Direct DirectLabor Labor Cost CostBudget Budget Factory FactoryOverhead Overhead Cost CostBudget Budget

Income Budgets Statement Relation Budgets

Sales Sales Budget Budget Cost Costof of Production Production

Production Budget Direct DirectMaterials Materials Purchases PurchasesBudget Budget Direct DirectLabor Labor Cost CostBudget Budget Factory FactoryOverhead Overhead Cost CostBudget Budget

Income Budgets Statement Relation Budgets

Sales Sales Budget Budget Cost Costof ofGoods Goods Sold SoldBudget Budget Selling Selling&& Administrative Administrative Expenses Expenses Budget Budget

Production Budget Direct DirectMaterials Materials Purchases PurchasesBudget Budget Direct DirectLabor Labor Cost CostBudget Budget Factory FactoryOverhead Overhead Cost CostBudget Budget

Direct Labor Budget

Direct Labor Budget • Provides an estimate of the cost of the direct labor 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

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 firm to avoid emergency hiring, prevent labor shortages, reduce or eliminate the need to lay off workers, etc.

11

Factors that must be considered while prepare the Direct Labor Budget • Unit to be produced budget • Time standard (historical/previous experience or time motion study) • Wage-rate standard (the regulation or negotiation 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

Direct Labor Budget Direct labor hours per unit x Labor rate per hour = Direct labor cost per x Units to be produced unit = Total direct labor cost

• 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

h. 152-153

Ket

PT.Charisma Direct Labor Budget Januari 1985 Unit Produced

Time standard (hour)

Total Hour

Wage-rate Total Paying (per hour) (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

-

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

Total

-

Exersice JMBL is preparing its direct labor budget for 2009 from the following production budget Quarter 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)

Factory Overhead Budget • A factory overhead budget often includes all production costs other than direct materials and direct labor

• Karakteristik BOP yaitu jumlahnya tidak proporsional dengan volume produksi, sulit ditelusur dan diidentifikasi langsung ke produk atau pesanan, dan jumlahnya tidak material.

Factory Overhead Costs: Examples Variable Overhead

Fixed Overhead   Factory Factory managers’ managers’

  Energy Energy costs costs   Indirect Indirect materials materials   Indirect Indirect labor labor   Equipment Equipment repair repair

and and maintenance maintenance

salaries salaries   Plant Plant and and equipment equipment depreciation depreciation   Plant Plant security security guards guards   Insurance Insurance and and property property taxes taxes for for factory factory building building and and equipment equipment

Factory Overhead Budget x

Units to be produced Variable costs per unit

= Total variable overhead + Budgeted fixed overhead = Total budgeted overhead

PT.XYZ Budget BOP Tahun Keterangan Unit Produced FOH Variable 1 2 3

Total FOH Variable

FOH Fixed 1 2 3

Total FOH Fixed

TOTAL FOH

TW 1

TW 2

TW 3

TW 4

Exersice • HAMSTA Corp is preparing its manufacturing overhead budget for 2009. 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