presentation smd

SAFETY MONITORING DEVICES, INCVOLUME BASED COSTING (TRADITIONAL)

VSACTIVITY BASED COSTING

Di Presentasikan Oleh :

Kelompok 4

-Gege Sadewa-Trihandoyo

-Novita Rachman-Yahrotunnisa (NIM 1006741021)

1

Richard ChenMendirikan Safety Monitoring Devices, Inc. (SMD) di Oxnard, California, pada tahun 1986 Richard, yang mendapat gelar di bidang ilmu pengetahuan material dari Universitas California di Santa Barbara.Mengembangkan sebuah alat portable gas safety monitor (alat pemantau keamanan gas) yang awalnya terfokus pada upaya membikin dan menjual portable oxygen deficiency monitor.Tahun 2001 Pabrik tersebut dibangun berkapasitas 1,5 kali lebih besar dari permintaan sekarang untuk dua alasan. Pertama, SMD mengharapkan permintaan akan ODD untuk terus berkembang. Kedua, SMD telah memulai pengembangan jenis produknya yang kedua, yakni: toxic gas detector (TGD). Yang pertama dari empat jenis TGD (carbon monoxide) diproduksi pada bulan Desember 2001, disusul dengan pengenalan tiga lainnya (chlorine dioxide, nitrogen dioxide, dan sulfur dioxide) dalam kurun waktu sekitar enam bulan. Pada pertengahan tahun 2003, keempat TGD tersebut tersedia untuk dijual.

2

Lourdes Sandino, (VP Marketing & Sales )

Filosofi penjualan SMD adalah memperoleh margin secara konsisten. “Kami tidak mau bersaing berdasarkan harga terendah, sehingga kami jarang memberikan diskon”, Harga-harga ditentukan untuk menghasilkan markup 30 persen dari harga produksi.

3

Mark Holder(Controller )

Menerapkan estimasi Total biaya produk dimana biaya overhead di tentukan ke produk berdasarkan jam kerja buruh langsung dalam proses produksi.

Keempat jenis TGD (chlorine dioxide, nitrogen dioxide, dan sulfur dioxide) mempunyai persamaan dalam bahan baku dan upah buruh, untuk pelaporan data tersebut, data – data mengenai biaya dikelompokkan kedalam dua jenis produk saja, yakni: ODD dan TGD.

Penganggaran produksi; bahan baku dan upah buruh; dan biaya overhead yang telah dianggarkan untuk tahun fiskal 2005 tersebut diperlihatkan pada masing-masing Exhibits 1, 2, dan 3.

4

Data Operasional SAFETY MONITORING DEVICES, INC

Safety Monitoring Devices Inc2005 Budgeted Production and Activity Levels

Desc Satuan ODD TGD Total(CO,ClO2,NO2,SO2)

Production/Sales Volumes Units 25,000 12,500 37,500 Production Run Batches 24 96 120 Purchasing Orders PO's 90 210 300 Product Shipments Shipments 80 320 400 Parts Numbers per Unit Parts 18 32 50 Direct Labours/Unit Hours 4 4 8 Machine Hours Per Unit Hours 3 5 8

5


Safety Monitoring Devices Inc2005 Standart Direct Material and Labor Per Unit

Desc ODD TGD(CO,ClO2,NO2,SO2)

Direct Material Cost $88 $111Direct Labor Cost $64 $64Direct Cost $152 $175

6


Safety Monitoring Devices Inc2005 Budgeted Overhead Cost

Corporate Overhead AmountR&D $300,000Marketing $380,000General Administration $750,000Total Corrporate Overhead Cost $1,430,000

Manufacturing OverheadPurchasing $120,000Material Handling $125,000Machine Set Up $180,000Supervision $225,000Quality Control $195,000Packaging & Shiping $210,000Machine Depreciation $165,000Plant ( Inc Upkeep,Depreciation,Property Taxes, and Insurance)$240,000Miscelaneous (E.g Indirect Material) $110,000Total Manufacturing Overhead Cost $1,570,000

TOTAL OVERHEAD $3,000,000

7

Greg Weiss (VP-Manufacturing)

Menganggap perusahaan hendaknya berjalan kearah apa yang disebutnya sebuah sistem biaya berbasis-aktivitas (ABC).Berpendapat, bahwa sistem costing yang ada saat ini yang menggunakan menggunakan nilai overhead tunggal dan standar dan menerapkannya kepada semua produk itu tidak masuk akal karena jelas ada perbedaan dalam volume dan pemanfaatan sumber sepanjang jenis produk ODD dan TGD. Perusahaan harus mengidetifikasi aktifitas utama yang berhubungan dengan biaya overhead perusahaan yang sedang terjadi dan kemudian menerapkan biaya tersebut terhadap produk yang didasarkan atas konsumsi produk dari masing-masing aktifitas tersebut.

8

Pengalokasian Biaya Overhead berdasarkan (“Driver”)yang di ajukan oleh Greg Weiss

Safety Monitoring Devices IncProposed Overhead Allocation Bases ("Driver")

Corporate Overhead Suggested "Driver"R&D Product Type

Marketing Product Lines

General Administration Productions UnitTotal Corrporate Overhead Cost

Manufacturing OverheadPurchasing Purchase Order

Material Handling Part Numbers

Machine Set Up Batches

Supervision Direct Labor Hours

Quality Control Production Units

Packaging & Shiping Shipment

Machine Depreciation Machines Hours

Plant ( Inc Upkeep,Depreciation,Property Taxes, and Insurance) Product Units

Miscelaneous (E.g Indirect Material) Machines Hours

Product Type : 1. Oxygen, 2. Carbon Monoxide, 3. Chlorine Dioxide, 4. Nitrogen Dioxide, 5. Sulfur Dioxide

Product Lines : 1. Oxgen Deficency (ODD), dan Toxic Gas Detections (TGD)

9

Safety Monitoring Devices IncProposed Overhead Allocation Bases For The "In between Method"

Corporate Overhead Amount Suggested Allocation

R&D $300,000 Machines Hours

Marketing $380,000 Machines Hours

General Administration $750,000 Machines Hours

Total Corrporate Overhead Cost $1,430,000

Manufacturing Overhead

Purchasing $120,000 DM$

Material Handling $125,000 DM$

Machine Set Up $180,000 Machines Hours

Supervision $225,000 Machines Hours

Quality Control $195,000 Machines Hours

Packaging & Shiping $210,000 Machines Hours

Machine Depreciation $165,000 Machines Hours

Plant ( Inc Upkeep,Depreciation,Property Taxes, and Insurance)$240,000 Machines Hours

Miscelaneous (E.g Indirect Material) $110,000 Machines Hours

Total Manufacturing Overhead Cost $1,570,000

TOTAL OVERHEAD $3,000,000

Total Budgeted Production Cost were "Flexed" to reflect actual production volume if it happened to deviate from budgeted

Volume for examples using the budget data in Exhibit 1 and 2 for fiscal year 2005, Greg would be considered to opearte at target

or better, if actual manufacturing costs for 2005 would equal (25.000 unit X 152)+(12.500 unit X 175) + 1.570.000 = $3.000.000

or less if however actual production volumes in 2005 were to have been 20.000 units for ODD and 16.000 units for TGD,

then the target would be revised or " flexed" to (20.000 units X 152)+(16.000 units X 175)+(36.000/37.500)*1.570.000 = $7.347.200

10

Question

11

1. Calculate The Full Cost unit of ODD and TGD : a. Using The Existing Costing Method

JAWAB Question :

1. a. Total Cost per Unit using Existing Method

Existing Method (Overhead di spread berdasarkan Direct Labor hours)

" spread the Totality of all overhead costs to product based on the products usage of direct labor hours in the production process"

Overhead Cost

Sehingga Total Cost/Unit menggunakan Traditional Cost dimana Cost Driver nya adalah Direct Labor Hour

Desc ODD TGD

(Per Unit) (CO,ClO2,NO2,SO2)

Direct

Direct Material Cost $88 $111

Direct Labor Cost $64 $64

Total Direct Cost $152 $175

OVERHEAD

Corporate Overhead

R&D $8.00 $8.00

Marketing $10.13 $10.13

General Administration $20.00 $20.00

Total Corporate Overhead Cost $38.13 $38.13

Manufacturing Overhead

Purchasing $3.20 $3.20

Material Handling $3.33 $3.33

Machine Set Up $4.80 $4.80

Supervision $6.00 $6.00

Quality Control $5.20 $5.20

Packaging & Shiping $5.60 $5.60

Machine Depreciation $4.40 $4.40

Plant ( Inc Upkeep,Depreciation,Property Taxes, and Insurance) $6.40 $6.40

Miscelaneous (E.g Indirect Material) $2.93 $2.93

Total Manufacturing Overhead Cost $41.87 $41.87

TOTAL OVERHEAD $80.00 $80.00

1.a. TOTAL COST (Direct+Overhead) $232.00 $255.00

Question

12

1. Calculate The Full Cost unit of ODD and TGD : b. Using Gregs’ Proposed ABC Method Thus using Suggested “Driver”

JAWAB Question :

1. b. Total Cost per Unit Using Gregs’ Proposed ABC Method Thus using Suggested “Driver”Sehingga Total Cost/Unit menggunakan "Suggested Driver" dari Greg

Desc ODD TGD(Per Unit) (CO,ClO2,NO2,SO2)

DirectDirect Material Cost $88 $111

Direct Labor Cost $64 $64Total Direct Cost $152 $175OVERHEAD

Corporate OverheadR&D $2.40 $19.20

Marketing $7.60 $15.20


Total Corporate Overhead Cost $30.00 $54.40Manufacturing Overhead












1.b TOTAL COST (Direct+Overhead) $212.81 $293.39

Question

13

1. Calculate The Full Cost unit of ODD and TGD : c. Using “In between Method” , driver adalah direct material and machines Hours

JAWAB Question :

Sehingga Total Cost/Unit menggunakan "In Between Method"Desc ODD TGD

(Per Unit) (CO,ClO2,NO2,SO2)DirectDirect Material Cost $88 $111

Direct Labor Cost $64 $64Total Direct Cost $152 $175OVERHEAD

Corporate OverheadR&D $6.55 $10.91

Marketing $8.29 $13.82


Total Corporate Overhead Cost $31.20 $52.00Manufacturing Overhead












1.c TOTAL COST (Direct+Overhead) $218.12 $282.76

Question

14

2. Why were ? a. Lourdes so Interested in having the company change it cost system?

JAWAB Question :

2. a. Why Were Lourdes so Interested in having the company change it cost system? Jawab : Lordes ingin mengetahui seberapa besar Target harga jual per unit yang ditentukan sebesar 130% dari Total Cost (Full Cost)

dan selisih Target Harga Jual terhadap Harga Jual Aktual nantinyaRekapitulasi Perbandingan Total Biaya Produk Per Unit (Existing, Suggested Driver, In Between Method)

ODD TGD ODD TGD ODD (Per Unit) (CO,ClO2,NO2,SO2) (CO,ClO2,NO2,SO2)

DIRECT COSTDirect Material Cost 88.00 111.00 88.00 111.00 88.00 Direct Labor Cost 64.00 64.00 64.00 64.00 64.00 Total Direct Cost 152.00 175.00 152.00 175.00 152.00 OVERHEADCorporate OverheadR&D 8.00 8.00 2.40 19.20 6.55 Marketing 10.13 10.13 7.60 15.20 8.29 General Administration 20.00 20.00 20.00 20.00 16.36 Total Corporate Overhead Cost 38.13 38.13 30.00 54.40 31.20 Manufacturing OverheadPurchasing 3.20 3.20 1.44 6.72 2.94 Material Handling 3.33 3.33 2.65 4.71 3.07 Machine Set Up 4.80 4.80 1.44 11.52 3.93 Supervision 6.00 6.00 6.00 6.00 4.91 Quality Control 5.20 5.20 5.20 5.20 4.25 Packaging & Shiping 5.60 5.60 1.68 13.44 4.58 Machine Depreciation 4.40 4.40 3.60 6.00 3.60 Plant ( Inc Upkeep,Depreciation,Property Taxes, and Insurance) 6.40 6.40 6.40 6.40 5.24 Miscelaneous (E.g Indirect Material) 2.93 2.93 2.40 4.00 2.40 Total Manufacturing Overhead Cost 41.87 41.87 30.81 63.99 34.92

TOTAL OVERHEAD 80.00 80.00 60.81 118.39 66.12

1. TOTAL COST (Direct+Overhead) 232.00 255.00 212.81 293.39 218.12

2. a TARGET HARGA JUAL (130%X Total Cost) 301.60 331.50 276.65 381.40 283.55

Desc 1.a. (Existing Methode) 1.b. (Suggested Driver) 1.c. (In between Methode(Driver : DM$ dan

Question

15

JAWAB Question :

2. b. Why Greg so Interested to change its Cost System ? Jawab : Karena Greg seorang VP Manufacturing ingin mengetahui seberapa besar distorsi Total Biaya Per Unit Produk yang terjadi antara :

- Existing Costing (Driver nya Direct Labor Hours) Terhadap Suggested Driver oleh Greg

- Existing Costing (Driver nya Direct Labor Hours) Terhadap In Between Method

- Distorsi Existing Costing (Driver nya Direct Labor Hours) Terhadap Suggested Driver oleh GregDescription ODD TGD

(CO,ClO2,NO2,SO2)Total Cost Per Unit Produk (Existing Costing) 232.00 255.00

Total Cost Per Unit Produk (Suggested Driver Greg) 212.81 293.39

DISTORSI PER UNIT 19.19 (38.39) PRODUCTION VOLUME 25,000 12,500 TOTAL DISTORSI UNTUK KESELURUHAN LINE PRODUKSI 479,824 (479,824) ** Jumlah kedua distorsi adalah NOL

- Distorsi Existing Costing (Driver nya Direct Labor Hours) Terhadap In Between MethodDescription ODD TGD

(CO,ClO2,NO2,SO2)Total Cost Per Unit Produk (Existing Costing) 232.00 255.00

Total Cost Per Unit Produk (In Between Method) 218.12 282.76

DISTORSI PER UNIT 13.88 (27.76) PRODUCTION VOLUME 25,000 12,500 TOTAL DISTORSI UNTUK KESELURUHAN LINE PRODUKSI 347,029 (347,029) ** Jumlah kedua distorsi adalah NOL

Question

16

3. What are the effect Of changing costing Method ? Specifically are the differences between these three method significants in term of a. Their on individual Product costs

JAWAB Question :

3. a. Pengaruhnya terhadap total cost per unit adalah terlihat pada metode pengalokasian biaya Overhead ke Produk

Terlihat jelas dari besarnya biaya Overhead per jenis produk,dimana dengan menggunakan :

'- metode yang ada (single driver) Total OverHead ==> ODD = TGD

Total Cost ==> TGD > ODD

'- metode Suggested Driver oleh Greg Total OverHead ==> TGD > ODD


Total Cost TGD menjadi tertinggi diantara ketiga metode yang dipakai

'- metode In Between Total OverHead ==> TGD > ODD


ODD TGD ODD TGD ODD TGD (Per Unit) (CO,ClO2,NO2,SO2) (CO,ClO2,NO2,SO2) (CO,ClO2,NO2,SO2)

Total Direct Cost 152.00 175.00 152.00 175.00 152.00 175.00

TOTAL OVERHEAD 80.00 80.00 60.81 118.39 66.12 107.76 1. TOTAL COST (Direct+Overhead) 232.00 255.00 212.81 293.39 218.12 282.76

Desc 1.a. (Existing Methode) 1.b. (Suggested Driver)

1.c. (In between Methode(Driver : DM$ dan Machine Hours)

Question

17

3. What are the effect Of changing costing Method ? Specifically are the differences between these three method significants in term of b. Their Effect on Total Company Profit (assuming that there are no no changes in any operating decisions, such as regarding prices and production volume)

JAWAB Question :

3. b. Their Effect on Total Company Profit Profit Secara total dengan menggunakan ketiga metode hasilnya sama

Namun bila dilihat per jenis produk, maka :

'- Metode Existing = Laba ODD > TGD '- Metode Suggested Driver oleh Greg = Laba ODD > TGD '- Metode In Between = Laba ODD > TGD

ODD TGD ODD TGD ODD TGD(CO,ClO2,NO2,SO2) (CO,ClO2,NO2,SO2) (CO,ClO2,NO2,SO2)

SALES ( Per unit) 301.60 331.50 276.65 381.40 283.55 367.59

Unit 25,000.00 12,500.00 25,000.00 12,500.00 25,000.00 12,500.00

TOTAL SALES 7,540,000.00 4,143,750.00 6,916,229.41 4,767,520.59 7,088,862.53 4,594,887.47 Production Cost

Direct Material 2,200,000.00 1,387,500.00 2,200,000.00 1,387,500.00 2,200,000.00 1,387,500.00

Direct Labor 1,600,000.00 800,000.00 1,600,000.00 800,000.00 1,600,000.00 800,000.00

Manufacturing Overhead 1,046,666.67 523,333.33 770,176.47 799,823.53 872,971.18 697,028.82

Total Production Cost 4,846,666.67 2,710,833.33 4,570,176.47 2,987,323.53 4,672,971.18 2,884,528.82

LABA OPERASI 2,693,333.33 1,432,916.67 2,346,052.94 1,780,197.06 2,415,891.35 1,710,358.65

CORPORATE OVERHEAD COST 953,333.33 476,666.67 750,000.00 680,000.00 780,000.00 650,000.00

PROFIT BEFORE TAX 1,740,000.00 956,250.00 1,596,052.94 1,100,197.06 1,635,891.35 1,060,358.65

TOTAL PROFIT

Desc 1.a. (Existing Methode) 1.b. (Suggested Driver) 1.c. (In between Methode(Driver : DM$

2,696,250.00 2,696,250.00 2,696,250.00

Question

18

JAWAB Question :

3. c. Why are the differences are significant, explain why they exist. If there are no differences, or if the differences are significant, explain why this is the case. Profit secara Total Tidak ada bedanya, karena jumlah penjualan sama demikian pula jumlah total biaya sama

Namun profit per produk akan berbeda, karena pengalokasian biaya overhead per produk menggunakan metode yang berbeda.

4. Do You Think the cost system was a cause of the request that Lourdes was receiving to discount ODDs back in 2001, when SMD was still a one product, ODD-only company? Would it have made sense to start implementing ABC at that time Adanya perubahan Cost System ini merupakan hasil review dari Greg, Greg beranggapan bahwa sangat tidak masuk akal

perusahaan untuk tetap menggunakan Metode Volume Based Cost (single driver = Labor Hour), karena saat ini perusahaan telah menghasilkan

produk lebih dari satu, dan setiap produk pastinya melewati aktivitas produksi yang berbeda, sehingga biaya overhead nya pasti berbeda

dipengaruhi oleh jenis dan besarnya cost driver.

5. What Should SMD Management do regarding it's Cost System? (To the extent that they Exist, discuss the advantages and disadvantages of Each Alternatives Why Did You Recommend the alternatives that You Chose? Explain

KETERANGAN Suggested Driver In Between PILIHAN VV

Dengan semakin berkembangnya perusahaan ada baiknya SMD meninggalkan Sistim costing yang lama Dan beralih ke Activity Based Costing yang mengalokasikan biaya overhead sesuai Activity Pool nya, menentukkan Cost Driver Berdasarkan Cost Driver Tsb biaya overhead dibebankan ke produk sesuai dengan proporsi aktivitas yang dilalui selama proses produksi Dari kedua metode ABC Costing, dilihat besarnya distorsi, distorsi biaya per unit produk lebih kecil dengan menggunakan metode In Between Dari segi biaya, semakin banyak Cost Driver semakin besar biaya yang dibutuhkan untuk mempelajari dan menentukkan Cost Driver dari masing-masing produk.

Question

19

4. Do you think the cost system was a cause of the request that Lordes was receiving to discount ODDs back in 2001, when SMD was still a one product, ODD only company?, Would it have made sense to start implementing ABC at that time?

5. What Should SMD management do regarding its cost system (To the extent that they exist, discuss the advantages and disadvantages of each alternative. Why did you recommend the alternative that you chose? Explain

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