Flashcards in Extras Deck (15)

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1

## Machine utilisation formula

### Production requirement / maximum total machine capacity. X. 100%

2

## Wastage %

### £ X 100 / 100 - wastage %)

3

## Production capacity - materials

### Total materials used / kilo per unit

4

## Production capacity - labour hrs

###
Mins / 60 mins = ?

Labour hrs / ?

5

## Monthly budget - Variable production overheard

###
1) Mins / 60 mins X No of labour hours = x

2) no of labour hours / x (point 1) = xc

3) VPO / (units produced (p.a) / x (point 1)) X

4) answer from 3 X xc

6

##
Selling price increases/ decreases

Or

Remove price increase/decrease

###
Increase —-> Selling price X (100+increase) / 100%

Decrease —-> selling price X. (100-percentage) / 100%

Or

Remove increase —-> selling price X 100 / (100+increase)

Remove decrease—->selling price X 100 / (100-decease)

7

## Fixed / Variable cost formula

### Total Cost = Fixed Cost + (Variable Costs X units produced)

8

## Stepped Cost formula

###
1) sales volume (original budget) / units per step (in notes) =no of steps

2) total cost (original budget) / no of steps = cost per step

3) actual volume / units per step (in notes) = no of steps (round up) X cost per step (answer 2)

9

## Time series analysis formula

### Last figure - first figure / no of changes (NOT YEARS)

10

## Linear regression formula

###
Y = M x X + C

Y - forecast

M - increase

X - no of time changes

C - starting value

11

## Seasonal variations formula

###
Y = T + S

Y - actual data

T - trend

S - seasonal variation

12

## Index calculation

### Forecast price = historical price X (expected/forecast index / historical index)

13

## Where to allocate wastage of materials DURING production

### Materials USAGE budget

14

## Where to allocate wastage of materials BEFORE production?

### Materials purchase budget

15