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throughout the project. The Company does not use a full ABC costing
system; however, it does employee some of the ABC concepts in the
budgeting process.
The administrative department handles all of the purchasing,
accounting, and secretarial duties in a highly efficient manner. The
need for separate departments is not necessary at this time.
2005 INFORMATION
SUPER
DEPARTMENT
STUPENDOUS
DEPARTMENT
Number of machines available
26
20
Annual capacity per machine
15,000 gallons
15,000
gallons
Annual production capacity
390,000 gallons
300,000 gallons
Machine hours available per machine 1,800 hours
1,800
hours
Standard machine hour per gallon
.12 hour/gallon
.12 hour/gallon
Standard labor hour per machine hour
1.25 labor hr/mach.hr
1.25 labor hr/mach.hr
Actual sales volume
420,000 gallons
268,200 gallons
Number of hourly employees
29
21
Supervisors (one per each eight hourly
employees)
4
3
Raw material prices
Cans
40¢ each
40¢ each
Pigment
$2.75 per pound
$3.75 per pound
Raw material usage
Cans
one per gallon
one per
gallon