HND财政预算报告outcome 1.doc

PAGE \* MERGEFORMAT 1 Beijing Institute of Technology SQA HND Assignment Table of contents Introduction …………………………………………………………………….3 Part A…………………………………………………………………………….3 Part B…………………………………………………………………………….5 Conclusion……………………………………………………………………… 6 Reference…………………………………………………………………………6 Appendix…………………………………………………………………………7 Introduction This report is for Tricol plc which makes a range of furniture and kitchenware. One of the most popular products is the Zupper expandable table. It will do some variance analysis in the Part A. It will includes direct material usage, direct material price, direct labor rate direct, labor efficiency and total overhead. Some suggestions will be given following the analysis. In Part B, there will take two methods to analyze the project that is whether to accept. It will discuss the advantages and disadvantages of the two methods, finding out the best methods that is suit for the company. At last, some other factors such as environment, technology, legal, and customers will be discussed for the managers. Furthermore, some needed appendixes will be followed the report. Part A Variance analysis and reporting Once the variances have been calculated, they should be analyzed to find what the problems are. The criterion that the rate of variance needs to be analyzed is more than 3%, and according to the Appendix 3, as a result, it needs to analyze all the variances. Direct material usage: According to the Appendix 2, the variance of direct material usage is favorable, which is about ￡8000 and the rate of direct material usage variance reaches 12.5%. This is a high level and it may due to the two reasons such as higher quality materials and higher grade workforce. The company chooses the higher quality materials could reduce the spoilages during the producing. And it could reduce the inferiors in the finish products. To reduce the materials is as a result. Giving the labor higher workforce may reduce the mistakes by labors