flexible budgets and overhead analysis

Flexible Budgets and Overhead Analysis

Pertemuan 9

© The McGraw-Hill Companies, Inc., 2003McGraw-Hill/Irwin

Pengertian

Flexible Budget atau Anggaran Variabel

Adalah anggaran yang di desain untuk mencakup jangkauan aktivitas yang digunakan untuk mengembangkan biaya yang dianggarkan pada titik manapun dalam rentang aktivitas tersebut untuk dibandingkan dengan biaya sesungguhnya pada suatu perusahaan.


Definisi lain menyatakan :

Flexible budget adalah anggaran yg dapat disesuaikan dengan berbagai tingkat aktivitas guna mncerminkan bagaimana biaya-biaya berubah seiring dengan perubahan volume produksi.


Flexible budget berbeda denga anggaran

Statis. Anggaran statis adalah anggaran yang

dibuat untuk satu tingkat kegiatan (one level of

activity) selama jangka waktu tertentu.

Contohnya persentase dari kapasitas, jumlah

produk yang dihasilkan selama jangka waktu

tertentu, jumlah jam yang dikerjakan dan

lainnya.


Perbedaan Anggaran Statis dengan Anggaran Fleksibel

a. Flexible Budget tidak membatasi diri hanya pada satu tingkat aktivitas, tetapi pada beberapa tingkat kisaran aktivitas (range activity atau relevant activity).

b. Static Budget diarahkan pada satu tingkat saja.


b. Dalam pendekatan Flexible Budget hasil dari actual tidak harus dibandingkan biaya yang dibudgetkan pada tingkat budget aktivitas semula, pada static budget harus dibandingkan


c. Flexible Budget bersifat dinamik ,. Static budget bersifat statis.

d. Pada Flexible Budget terdapat under or over applied, dan static budget istilah ini tidak ada.


2. Karaktetristik dari Flexible Budget

1) . Ditujukan ke arah tingkat kapasitas keseluruhan yang berada dalam “range relevan atau relevant range” dari pada tingkat aktivitas tertentu dan hanya ditujukan kearah satu tingkat aktivitas (Denomonitory Activity). Denominator Activitry adalah angka yang ditentukan dalam flexible budget yang dapat digunakan untuk menentukan jumlah total biaya overhead pabrik pada tingkat aktivitas tertentu dari relevant range.

Tarif biaya overhead overhead pabrik ditentukan dimuka =

BIaya FOH Flexible budget/Denominator activity.


2).Bersifat dinamis dari anggaran

statis, karena flexible budget

dapat disesuaikan dengan tingkat

aktivitas apa pun yang berada

dalam relevant range/activity,

sekalipun periode sudah berlalu.


3). Dalam masalah perhitungan

Overhead (non manufaktur) dan

Factory Overhead (Manufaktur)

terdapat 4 faktor yang dapat di

analisis dalam flexible budget

yaitu :


(1) FOH ( Pabrik dan Non pabrik ) umumnya terdiri dari atas biaya yang banyak terpisah satu sama lainnya

(2) Biaya yang terpisah ini kerap sangat kecil nilai $/rupiahnya sehingga menyulitkan untuk mengendalikannya dengan cara yang sama dengan pengendalian Direct Material Cost dan Direct Labor Cost.


(3). Biaya yg terpisah lainnya kecil ini sering kali merupakan tanggung jawab atau pusat pertanggung jawaban dari manajer yang saling berbeda pada segemen yang berbeda pula .(4). Biaya FOH ( khusus pabrik) berbeda perilaku biayanya , variabel, tetap dan semi variabel.


Tahap-tahap Flexible budget dapat berjalan dengan baik

.1. Menentukan kisaran relevan atas aktivitas yg

diharapkan berfluktuasi masa periode yang akan datang.

2. Menganalisis biaya pada relevant range dalam elemen varabel,tetap dan semi vaiabel..

3. Memisahkan biaya berdasarkan perilakunya dan menetupan tarif untuk biaya, tetap , varabel dan semi variabel


4. Menggunakan tarif untuk bagian variabel dari biaya, menyusun sebagai budget yg memperlihatkan biaya-biaya apa yg akan dikeluarkan pada berbagai titik operasi pada semua relevant range.

5.Melakukan analisis Varians khusus Overhead dan Factory Overhead atas Biaya Variabel dan Biaya Variabel untuk mengukur kinerja perusahaan .


Ada 4 varians dalam Flexible

Budget yaitu:

1 Varians variabel (Variable Manufacturing Overhaed Variance ). VMOV 1).Spending V = Variable manufacturing Overhead Spending variance) VMOSV = AH(AR-SR)= (AOVR X AH)- (SOVRXAH) = (AOVR-SOVR) AH. 2). Variable Manufacturing Overhead Efficiency Variancer (VMOEV) = SR(AH-SH) (SOVR xAH) –(SVORxSH) = (SH-AH)SVOR


2. Fixed Manufacturing Ovrhead Variance (FMOV) Dicari dulu POR = Taksiran Jumlah FOH per periode/ Taksiran Machie hours(MH) atau unit yg diproduksi per periode. Contoh : Untuk bulan Oktober 2006 Biaya FOH tetap ditaksir $ 381.000, jumlah unit diprodusi maka biaya per unit (POR) = $ 31.000/1.000 = $ 381/unit. Dalam perhitungan Flexible Budget harus dapat ditntukan taksiran Demoninatory Actvity yaitu tingkat ketigatan aktivitas pada jumlah jam mesin/JTKL tertentu diatnara relevan range untuk periode masa depan yang ditetapkan pada awal tahun anggaran.Varians pada FOH teap, ada dua varians.


3).Fixed Manufacturuing overhead Volume Variance (FMOVV) :

Volume Variance= POR x ( DMH - SMH) atauFixed portion of the POR x( DM –SH allowed).

DM=Denomitory activity. Penggunaan Denomitory aktivity ada 3 hal diperhatikan : a. Jika Denominator activity sama dengan jam standar

allowed pada priode ini maka Volume Varians nihil.b. JIka denominator activity lebih besar dari jam standard allowed dalam priode ini kemudian timbul varians volume UF, berarti penggunaan di bawah fasilitas yang tersedia.

c. Jika denominator activity lebih kecil dari jam standar allowed dalam priode ini, kemudian timbul varians volume UF, berarti penggunaan yang tinggi terhadap fasilitas yang tersedia dibandingkan yang yang telah direncanakan.

4).Fixed Manufactruing Overhead Budget variance atau Budget Variance= Actual Fixed FOH cost- Budgeted Fixed FOH Cost.


1.Contoh . Kohn Mountain menggunakan Flexible Budget untuk operasi perusahaannya dan mempunyai data sebagian dari relevant range 5.000 unit – 10.000 unit.Biaya 5.000unit 10.000 unit.Depresiasi $ 3.000 $ 3.000Power 10.000 20.000Bahan tak langsung 9.000 10.000Pemeliharaan 8.500 10.000Biaya lainnya . 5.000 7.000 Jumlah $ 35.500 $ 50.000


Diminta :a. Susunlah Flexible Budget dalam

kompenen biaya .b. Buatlah Flexible budget dengan

kenaikan 1.250 unit.c. Grafik Flexible budget.d. Hitunglah “semi variabel cost “ pada

tingkat aktivitas 7.500 unit.


Jawab :1. Flexible budget dengan analisis kompenen.

Biaya tetap adalah depresiasi = $ 3.000. 2 -Power : maksimum = $ 20.000 = 10.000 unit

minimum = $ 10.000 = 5.000 unit High and low $ 10.000 = 5.000 unitElemen variabel $ 10.000/5.000 = $ 20.Elemen tetap :maksimum =10.000x$20 = $ 20.000, sama dengan biayanya $20.000,Elemen tetap= 0


3. Bahan tidak langsung dengan hal yang sama:Elemen variabel = Mak 10.000 unit = $ 10.000 Min 5.000 unit = 9.000 5.000 unit = $ 1.000 Elemen variabel= $ 1.000/5000 = $ 0,20 unit Elemen tetap = Mak: 10.000 = $ 10.000 10.000x0,20 = . 2.000 Elemen tetap $ 8.000


4. Pemeliharaan : Mak:10.000 unit = $ 10.000

5.000 unit = 8.500

5.000 unit $ 1.500

Elemen variabel = $1.500/5000 = $0,30.unit

Elemen tetap Mak =10.000. = $ 10.000

10.000x 0,30= . 3.000

Elemen tetap $ 7.000


5. Biaya lainnya: Mak :10.000 =$ 7.000

Min 5.000 = 5.000 5.000 = $

2.000

Element variabel = $ 2.000/5.000 = $ 0,40 unit

Elemen tetap = $ 7.000 – ( $0,40 x 10.000) = $ 3.000


Budget Flexible dengan kompenen (bentuk High and low) adalah berikut ini : Relevan Range 5.000 – 10.000 unit . Biaya Tetap Biaya Variabel Depresiasi 3.000 0 Power 0 20 unit Bahan tak langsung 8.000 0,20 unit Pemeliharaan 7.000 0,30 unit Biaya lainnya . 3.000 0,40 unit Jumlah $ 21.000 $ 2.90 unit


Dari hasil diatas dapat dihitun pada tingkat relevant range tertentu dengan rumus Y = a + bx atau $ 21.000+2,90X Tingkat aktivitas setiap 200 unit Relevant range ( unit) Biaya 5.000 6.250. 7.500 8.750 . 10.000 Depresiasi 3.000 3.000 3.000 3.000. 3.000Power 10.000 12.500 15.000 17.500 20.000Bahan tak langsung 9.000 9.250 9.500 9.750 10. 000Pemeliharaan 8.500 8.875 9.250 9.625 10.000 Biaya lainnya 5.000 5.500 6.000 6.500 7.000 Jumlah 35.500 39.125 42.750 46.375 50.000


c. Grafik Flexible Budget, hampir sama dengan grafik Fixed Cost dan Variabel cost.

d. Menghitung Biaya Semi Variabel pada tingkat 7.500 unit Perguanakan Formula Y = a + bX

Bahan tak langsung = $ 8.000 + $0,20 X Pemeliharaan = 7.000 + $0,30 X Biaya lainnya = 3.000 + $0,40X

Jumlah Y = $ 18.000+ $0,90XTingat relevant range 7.500, maka biaya semi variabelnya adalah $ 18.000 +( $0,90 x 7.500) = $ 24.750.Depresiasi dan Power tidak dihitung karena kedua bersifat tetap dan variabel secara total. Bahan lainnya dapat dilihat dari Power Point berikut ini.


Static Budgets and Performance Reports

Let’s look at CheeseCo.

Static budgets are prepared for a single,

planned level of activity.

Performance evaluation is difficult when actual activity

differs from the planned level of

activity.

Hmm! Comparingstatic budgets withactual costs is likecomparing apples

and oranges.



CheeseCo



U = Unfavorable variance CheeseCo was unable to achieve

the budgeted level of activity.

CheeseCo



CheeseCo

F = Favorable variance that occurs when actual costs are less than budgeted costs.



Since cost variances are favorable, havewe done a good job controlling costs?

CheeseCo


Flexible Budgets

Improve performance evaluation.

May be prepared for any activity level in the relevant range.

Show revenues and expensesthat should have occurred at theactual level of activity.

Reveal variances due to good costcontrol or lack of cost control.


Preparing a Flexible Budget

To a budget we need to know that:Total variable costs change

in direct proportion to changes in activity.

Total fixed costs remainunchanged within therelevant range. Fixed

Variable


Preparing a Flexible BudgetCheeseCo

Cost Total Flexible BudgetsFormula Fixed 8,000 10,000 12,000Per Hour Cost Hours Hours Hours

Machine hours 8,000 10,000 12,000

Variable costs Indirect labor 4.00 32,000$ Indirect material 3.00 24,000 Power 0.50 4,000 Total variable cost 7.50$ 60,000$

Fixed costs Depreciation 12,000$ Insurance 2,000 Total fixed costTotal overhead costs

Fixed costs areexpressed as atotal amount.

Variable costs are expressed as a constant amount per hour.

$40,000 ÷ 10,000 hours is$4.00 per hour.



Machine hours 8,000 10,000 12,000


Fixed costs Depreciation 12,000$ Insurance 2,000 Total fixed costTotal overhead costs


$4.00 per hour × 8,000 hours = $32,000

CheeseCo




Machine hours 8,000 10,000 12,000


Fixed costs Depreciation 12,000$ 12,000$ Insurance 2,000 2,000 Total fixed cost 14,000$ Total overhead costs 74,000$ ?

CheeseCo




Machine hours 8,000 10,000 12,000

Variable costs Indirect labor 4.00 32,000$ 40,000$ Indirect material 3.00 24,000 30,000 Power 0.50 4,000 5,000 Total variable cost 7.50$ 60,000$ 75,000$

Fixed costs Depreciation 12,000$ 12,000$ 12,000$ Insurance 2,000 2,000 2,000 Total fixed cost 14,000$ 14,000$ Total overhead costs 74,000$ 89,000$

CheeseCo

Total fixed costsdo not change in

the relevant range.




Machine hours 8,000 10,000 12,000

Variable costs Indirect labor 4.00 32,000$ 40,000$ 48,000$ Indirect material 3.00 24,000 30,000 36,000 Power 0.50 4,000 5,000 6,000 Total variable cost 7.50$ 60,000$ 75,000$ 90,000$

Fixed costs Depreciation 12,000$ 12,000$ 12,000$ 12,000$ Insurance 2,000 2,000 2,000 2,000 Total fixed cost 14,000$ 14,000$ 14,000$ Total overhead costs 74,000$ 89,000$ 104,000$

CheeseCo


Flexible BudgetPerformance Report

Cost TotalFormula Fixed Flexible ActualPer Hour Costs Budget Results Variances

Machine hours 8,000 8,000 0

Variable costs Indirect labor 4.00$ 34,000$ Indirect material 3.00 25,500 Power 0.50 3,800 Total variable costs 7.50$ 63,300$ Fixed Expenses Depreciation 12,000$ 12,000$ Insurance 2,000 2,050 Total fixed costs 14,050$ Total overhead costs 77,350$

Flexible budget is prepared for the

same activity level (8,000 hours) as

actually achieved.

CheeseCo




Variable costs Indirect labor 4.00$ 32,000$ 34,000$ $ 2,000 U Indirect material 3.00 24,000 Power 0.50 4,000 Total variable costs 7.50$ 60,000$ Fixed Expenses Depreciation 12,000$ 12,000$ Insurance 2,000 2,000 Total fixed costs 14,000$ Total overhead costs 74,000$


CheeseCo





Variable costs Indirect labor 4.00$ 32,000$ 34,000$ $ 2,000 U Indirect material 3.00 24,000 25,500 1,500 U Power 0.50 4,000 Total variable costs 7.50$ 60,000$ Fixed Expenses Depreciation 12,000$ 12,000$ Insurance 2,000 2,000 Total fixed costs 14,000$ Total overhead costs 74,000$

CheeseCo




Variable costs Indirect labor 4.00$ 32,000$ 34,000$ $ 2,000 U Indirect material 3.00 24,000 25,500 1,500 U Power 0.50 4,000 3,800 200 FTotal variable costs 7.50$ 60,000$ 63,300$ $ 3,300 UFixed Expenses Depreciation 12,000$ 12,000$ 12,000$ 0 Insurance 2,000 2,000 2,050 50 UTotal fixed costs 14,000$ 14,050$ 50 UTotal overhead costs 74,000$ 77,350$ $ 3,350 U


CheeseCo


Static ActualBudget Results Variances

Machine hours 10,000 8,000 2,000 U

Variable costs Ind irect labor 40,000$ 34,000$ $6,000 F Indirect materials 30,000 25,500 4,500 F Power 5,000 3,800 1,200 F

Fixed costs Depreciation 12,000 12,000 0 Insurance 2,000 2,050 50 U

Total overhead costs 89,000$ 77,350$ $11,650 F

Static Budgets and Performance How much of the $11,650 is due to activity

and how much is due to cost control?



Difference between original static budgetand actual overhead = $11,650 F.

Overhead Variance Analysis

Static ActualOverhead OverheadBudget at at

10,000 Hours 8,000 Hours

89,000$ 77,350$

Let’s place the flexible budget for

8,000 hours here.



Overhead Variance Analysis

This $15,000F variance is due to lower activity.

Activity

This $3,350U flexiblebudget variance is dueto poor cost control.

Cost control

Static Flexible ActualOverhead Overhead OverheadBudget at Budget at at

10,000 Hours 8,000 Hours 8,000 Hours

89,000$ 74,000$ 77,350$



What causesthe cost

control variance?

There are two primaryreasons for unfavorablevariable overhead variances:

1. Spending too much for resources.

2. Using the resources inefficiently.


Overhead Rates and Overhead Analysis

Overhead from theflexible budget for the

denominator level of activityPOHR =

Recall that overhead costs are assigned to products and services using a

predetermined overhead rate (POHR):

Assigned Overhead = POHR × Standard Activity

Denominator level of activity


ColaCo prepared this budget for overhead:

Overhead Rates and Overhead Analysis – Example

Total Variable Total FixedMachine Variable Overhead Fixed Overhead

Hours Overhead Rate Overhead Rate

2,000 4,000$ ? 9,000$ ?

4,000 8,000 ? 9,000 ?

ColaCo applies overhead basedon machine hour activity.

ColaCo applies overhead basedon machine hour activity.

Let’s calculate overhead rates.



Rate = Total Variable Overhead ÷ Machine Hours


This rate is constant at all levels of activity.



2,000 4,000$ 2.00$ 9,000$ ?

4,000 8,000 2.00 9,000 ?




2,000 4,000$ 2.00$ 9,000$ 4.50$

4,000 8,000 2.00 9,000 2.25


Rate = Total Fixed Overhead ÷ Machine Hours


This rate decreases when activity increases.




2,000 4,000$ 2.00$ 9,000$ 4.50$

4,000 8,000 2.00 9,000 2.25


The total POHR is the sum ofthe fixed and variable ratesfor a given activity level.



ColaCo’s actual production for the period required 3,200 standard machine hours. Actual variable overhead incurred for the period was $6,740.

Actual machine hours worked were 3,300.

Compute the variable overhead spending and efficiency variances.

Variable Overhead Variances – Example


Variable Overhead Variances

AH × SR

AH × AR

Spending variance = AH(AR - SR)

Efficiency variance = SR(AH - SH)

SH × SR

Spending Variance

EfficiencyVariance

Actual Flexible Budget Flexible Budget Variable for Variable for Variable Overhead Overhead at Overhead at Incurred Actual Hours Standard Hours


3,300 hours 3,200 hours × × $2.00 per hour $2.00 per hour


$6,740 $6,600 $6,400

Spending variance$140 unfavorable

Efficiency variance$200 unfavorable

$340 unfavorable flexible budget total variance$340 unfavorable flexible budget total variance



2,050 hours 2,100 hours × × $5 per hour $5 per hour



$10,950 $10,250 $10,500

Spending variance$700 unfavorable

Efficiency variance$250 favorable

$450 unfavorable flexible budget total variance$450 unfavorable flexible budget total variance


Variable Overhead Variances – A Closer Look

Spending Variance Efficiency Variance

Results from paying moreor less than expected foroverhead items and from

excessive usage ofoverhead items.

Controlled bymanaging the

overhead cost driver.




What is ColaCo’s fixed overhead rate for an estimated activity of 3,000 machine hours?What is ColaCo’s fixed overhead rate for an estimated activity of 3,000 machine hours?



2,000 4,000$ 2.00$ 9,000$ 4.50$

4,000 8,000 2.00 9,000 2.25




Fixed Overhead Rate FR = $9,000 ÷ 3,000 machine hours

FR = $3.00 per machine hour



2,000 4,000$ 2.00$ 9,000$ 4.50$

4,000 8,000 2.00 9,000 2.25


ColaCo’s actual production required 3,200 standard machine hours. Actual fixed overhead

was $8,450.

Compute the fixed overhead budget and volume variances.

Fixed Overhead Variances – Example


Fixed Overhead Variances

Budget Variance

VolumeVariance

FR = Standard Fixed Overhead RateSH = Standard Hours Allowed

SH × FR

Actual Fixed Fixed Fixed Overhead Overhead Overhead Incurred Budget Applied


3,200 hours × $3.00 per hour

Budget variance$550 favorable

Fixed Overhead Variances – Example

$8,450 $9,000 $9,600

Volume variance$600 favorable

SH × FR



2,100 hours × $7.00 per hour

Budget variance$350 unfavorable

$14,800 $14,450 $14,700


Volume variance$250 favorable

SH × FR

Quick Check


Fixed Overhead Variances –A Closer Look

Budget Variance Volume Variance

Results from paying moreor less than expected for

overhead items.

Results from operatingat an activity leveldifferent from the

denominator activity.



Volume

Cost

3,000 Hours ExpectedActivity

$9,000 budgeted fixed OH

Fixed overhead

applied to products



$8,450 actual fixed OH

Volume

Cost



Fixed overhead

applied to products

$8,450 actual fixed OH$550Favorable

Budget Variance

{


{


$8,450 actual fixed OH

3,200 machine hours × $3.00 fixed overhead rate

$600FavorableVolume

Variance

$9,600 applied fixed OH

3,200 Standard

Hours

Volume

Cost



Fixed overhead

applied to products

{$550

FavorableBudget

Variance

{ $8,450 actual fixed OH


Volume Variance – A Closer Look

VolumeVariance

Results when standard hoursallowed for actual output differsfrom the denominator activity.

Unfavorablewhen standard hours< denominator hours

Favorablewhen standard hours> denominator hours


Overhead Variances and Under- or Overapplied Overhead Cost

In a standardcost system:

Unfavorablevariances are equivalent

to underapplied overhead.

Favorablevariances are equivalentto overapplied overhead.

The sum of the overhead variancesequals the under- or overapplied

overhead cost for a period.


CONTOH LAINNYA DARI FLEXIBLE BUDHET

Data for manufacturing Overhead of Tiagaroda Company are given below. lexible Budget at various level of activity

(hours) Cost Formula Direct Labor Activity

( Hours) .Overhaed Cost Per direct labor hours 10.000 12.000 14.000 16.000Variable Overhead costUtilitties $ 3,00 30.000 36.000 42.000 48.000Indirect labor 1,50 15.000 18.000 21.000 24.000Suplies . 2,50. 25.000 30.000 35.000 40.000Total Variavel overhead cost $ 7,00 70.000 84.000 98.000 112.000 Fixed Overhead cost Depreciation 18.000 18.000 18.000 18.000Insurance 33.000 33.000 33.000 33.000Supervisor 19.000 19.000 19.000 19.000 Total Fixed Overhead Cost 70.000 70.000 70.000 70..000 Total Overhead Cost 140.000 154.000 168.000 182.000


Four hours of direct labor time are required per unit product. The Tigaroda Coy has set demonitory activity for coming priod at 14..000 direct labor (DLHs) or 3.500 units.Assumse the following actual results for the priod.- Number of units produced 3.625 units.- Standard direct labors (DLHs) allowed 14.500 jam- Actual direct labor hours 14.800jam- Actual fixed overhead cost $ 72.000 - Actual variable overhead cost $ 104.000Required:a. Compute predetermined over rate (POR) an break it down into “ variable and fixed cost elements”b. Analyze the $................? Under or over applied Overhead.c. Compute the four variance of Overhead.

JAWAB:


POR tingkat denomitory activity 14.000 DLH . POR dalam DLHs =$ 168.000/14.000 = $ 12 DLHsElemen variabel = 98.000/14.000 = $ 7 DLH, jadi elemen tetap $ 12 - $ 7 = $ 5 DLHB.Analisis under or over applied dari overhead.Total Overhead aktual = $ 72.000 + $ 104.000 = $ 176.000Standard DLH 14.500 x $12dlh = $ 174.000 Overhead under applied $ 2.000


Four FOH Variance.

Overhead Fixed variance.

1.Budget variance= Actual fixed FOH

Flexible budget $ 72.000 –(Dominotory axtivity x elements fixed) =

$ 72.000- ($ 14.000 x $5) = $ 2.000 UF


2) Volume variance: = (Fixed portion of the PORx Donomintory activity)- Standard Hours. = $ 5( 14.000 - 14.500 ) = $ 2.500 F. FOH variable variance.3). Spending variance = (AR –SR) AH = $ 104. 000 – ( 14.800 x 7) = 104.000.000 – 106.000= $ 2.000 UF4). Eficiency = SR(AH-SH) = $7 ( 14.800 - 14.500) = $ 2.100 UF


3. Rekapitulasi Varians: Fixed FOH variance. - Budget variance $ 2.000 UF - Volume variance 2.500 F Variable FOH variance. - Spending variance 2.000 UF - Efficeincy variance 2.100 UF Total Variance $ 3.600 UF


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flexible budgets and overhead analysis

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