cost sheet

ALPHA GROUP : 

ALPHA GROUP REPARANT RESTAURAUNT GROUP 7:- PRIYANK RAJ SHAMBHAWI SINGH SHRUTI UPRETI ROOPALI VYAS ANKIT MALIK

Slide 2: 

COST INVOLVED IN PREPARATION OF BUTTER CHICKEN DIRECT MATERIAL * CHICKEN 98000 * BUTTER 4800 * SPICES 3000 * ONION 25000 * CREAM 500 * SALT 100 * GARLIC 400 * GINGER 200 DIRECT LABOUR * CHEF’S SALARY 6000 * CHEF’S ASSISTANT 3500 DIRECT EXPENSE * LPG 700 FACTORY OVER HEADS ELECTRICITY 10000 WATER SUPPLY 2000 UTENSILS 15000 ADMINIDTRATIVE OVER HEADS MANAGER’S SALARY 13800 WAITER SALARY 3500 SELLING DISTRIBUTIVE OVERHEAD ADVERTISING EXPENSES 15000

Slide 3: 

SOME ASSUMPTIONS WE PALN TO MAKE 30 PLATES IN A DAY WE ARE MAKING ONLY ONE DISH

COST SHEET : 

COST SHEET ITEMS Total cost Cost per day Cost per Unit Direct material (Chicken, Oil, Butter, Cream, Spices , Salt, Onions, Garlic, Ginger) 132000 4400 146.66 + Direct Labour (Chef’s salary, Chef’s assistant) 9500 316 10.50 + Direct Expense (LPG) 700 23.3 0.70 =PRIME COST 142200 4739.3 157.87 +Factory overhead (Electricity, Water Supply, Utensils) 27000 900 30

Slide 5: 

=WORK COST 169200 5639.3 187.87 +Administrative overheads 16800 560 18.60 (Waiter’s salary, manager’s salary, 4th class employee’s salary) =PRODUCTION COST 186000 6253.3 206.30 +Selling overheads 15000 500 16.60 (Advertising) =COST OF GOODS SOLD 201000 6753.3 223 +Profit 69390 2313 77.10 =SALES 270000 9000 300.00

Slide 6: 

The components of Cost-Volume-Profit Analysis are: Total cost Variable cost per unit Total fixed costs Sales Profits BEP units BEP rupees Contribution Contribution margin

FORMULAS USED IN CVP : 

FORMULAS USED IN CVP TOTAL COST : FC + VC TOTAL REVENUE : X *S PROFIT : TR - TC BEP UNITS : FC / S - V BEP RUPEES : BEP units * S CONTRIBUTION : S -V CONTRIBUTION MARGIN : S –V/S

Slide 8: 

With reference to the previous question and the following data Fixed cost: 26300 Variable cost: Rs 193.8

SOLUTION : 

SOLUTION TOTAL COST: FC + VC = 26300 +193.8 *30*30 = 201000 TOTAL REVENUE: X *S = 30*30* 300 =270000 PROFIT = TR – TC 270000- 201000 =69000

Slide 10: 

BEP UNITS : FC/S-V = 26300/300-193.8 = 26300/106.2 = 247.6 ~ 248 BEP (RS) = BEP units *S = 248* 300 = 74400

Slide 11: 

CONTRIBUTION : S - V = 300 – 193.8 = 106.2 CONTRIBUTION : S - V /S MARGIN = 106.2 /300 = .354 MARGIN OF SAFETY = SALES – BEP(RS) 270000-74400 195600

TARGET COSTING : 

TARGET COSTING NOW WE HAVE FIXED COST= 26300 VARIABLE COST = 193.8 AS THE COMPETETION GREW THE MORE AND MORE RESTAURANT CAME INTO EXISTANCE. SO IN THE CONTEMPORARY MARKET THE SELLING PRICE CAME TO Rs290 AND STILL WE NEED A PROFIT OF RS 77 PER PLATE C.P = S.P – PROFIT C.P = 290 – 77 C.P = 213 FOR THIS

Slide 13: 

WE HAVE REDUCED CHEF’S SALARY 6000 ----- 4500 CHEF’S ASSIT SALALY 3500 ----- 3000 ADVERTISMENT EXP 15000 ----- 10000 ELECTRICITY 10000 ----- 7700 BY THIS WE COME TO TOTAL COST OF 191700 WHICH IN TURN COMES OUT TO RS 213 PER PLATE

Slide 14: 

BUDGETING FOR THE CURRENT YEAR WE MADE A EXPECTED BUDGET LAST YEAR ITEMS EXPECTED ACTUAL DIRECT MATERIAL 140000 132000 DIRECT LABOUR 9500 9500 DIRECT EXPENSES 640 700 FACTORY OVERHEADS 24000 27000 ADMINSTRATIVE OVER HEADS 16800 16800 ADVERTISING 15000 15000 TOTAL COST 205940 201000 F U U

Slide 15: 

VARIANCE ACTUAL COST – EXPECTED COST 201000-205490 = -4940 4940/205490 = .024 WHICH IS FAVOURABLE. THANK YOU