B. MARGINAL COSTING
The following results have been obtained using Microsoft
EXCEL® spreadsheets:
Table 4-10 Marginal costing
for the determination of the unit cost of Cameroon Tribune (income statement
format)
VARIABLE COSTING FOR THE DETERMINATION OF THE UNIT COST
OF THE NEWSPAPER
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MONDAY1
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TUESDAY 1
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WEDNESDAY1
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THUSRDAY1
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FRIDAY1
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Totals
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COST
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DIRECT MATERIALS
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paper
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1 231 650 F
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985 320 F
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1 231 650 F
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1 231 650 F
|
1 477 980 F
|
6 158 250 F
|
black ink
|
150 000 F
|
140 000 F
|
120 000 F
|
140 000 F
|
150 000 F
|
700 000 F
|
blue ink
|
20 000 F
|
20 000 F
|
20 000 F
|
20 000 F
|
20 000 F
|
100 000 F
|
red ink
|
30 000 F
|
20 000 F
|
40 000 F
|
30 000 F
|
30 000 F
|
150 000 F
|
yellow ink
|
20 000 F
|
10 000 F
|
10 000 F
|
30 000 F
|
30 000 F
|
100 000 F
|
photographic sheet
|
500 000 F
|
500 000 F
|
500 000 F
|
500 000 F
|
500 000 F
|
2 500 000 F
|
photographic film
|
60 000 F
|
60 000 F
|
60 000 F
|
60 000 F
|
60 000 F
|
300 000 F
|
Sheet Developer
|
79 200 F
|
99 000 F
|
59 400 F
|
59 400 F
|
99 000 F
|
396 000 F
|
Film developer
|
9 000 F
|
4 500 F
|
13 500 F
|
4 500 F
|
13 500 F
|
45 000 F
|
Film fixing liquid
|
4 500 F
|
4 500 F
|
13 500 F
|
9 000 F
|
13 500 F
|
45 000 F
|
sheet proofreader
|
1 080 F
|
3 240 F
|
2 160 F
|
2 160 F
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2 160 F
|
10 800 F
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eraser
|
3 200 F
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3 200 F
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3 200 F
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3 200 F
|
3 200 F
|
16 000 F
|
soaking solution
|
30 000 F
|
18 000 F
|
24 000 F
|
24 000 F
|
24 000 F
|
120 000 F
|
sheet cleaner
|
12 480 F
|
9 360 F
|
10 920 F
|
10 920 F
|
18 720 F
|
62 400 F
|
tracing paper
|
10 000 F
|
5 000 F
|
15 000 F
|
5 000 F
|
15 000 F
|
50 000 F
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photocopy paper A4
|
20 000 F
|
15 000 F
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25 000 F
|
15 000 F
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15 000 F
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90 000 F
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photocopy paper A3
|
3 500 F
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1 750 F
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1 750 F
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5 250 F
|
5 250 F
|
17 500 F
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transparent sellotape
|
280 F
|
280 F
|
280 F
|
280 F
|
280 F
|
1 400 F
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packaging sellotape
|
1 120 F
|
1 120 F
|
1 120 F
|
1 120 F
|
1 120 F
|
5 600 F
|
packaging string
|
2 700 F
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2 700 F
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2 700 F
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2 700 F
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2 700 F
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13 500 F
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white glue
|
700 F
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700 F
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700 F
|
700 F
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700 F
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3 500 F
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industrial rag
|
14 000 F
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14 000 F
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14 000 F
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14 000 F
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14 000 F
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70 000 F
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soap paste
|
600 F
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600 F
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600 F
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600 F
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600 F
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3 000 F
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toner cartridge HP1200
|
120 000 F
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120 000 F
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180 000 F
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60 000 F
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240 000 F
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720 000 F
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toner cartridge HP5000
|
10 800 F
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9 000 F
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7 200 F
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12 600 F
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14 400 F
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54 000 F
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toner cartridge HP8500-black
|
1 200 F
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1 200 F
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1 200 F
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1 200 F
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1 200 F
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6 000 F
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toner cartridge HP8500-blue
|
1 200 F
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1 200 F
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1 200 F
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1 200 F
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1 200 F
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6 000 F
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toner cartridge HP8500-Red
|
1 200 F
|
1 200 F
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1 200 F
|
1 200 F
|
1 200 F
|
6 000 F
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toner cartridgeHP8500-yellow
|
1 200 F
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1 200 F
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1 200 F
|
1 200 F
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1 200 F
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6 000 F
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drummer KitC4153A
|
1 200 F
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1 200 F
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1 200 F
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1 200 F
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1 200 F
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6 000 F
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Total cost of direct materials
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2 340 810 F
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2 053 270 F
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2 362 680 F
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2 248 080 F
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2 757 110 F
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11 761 950 F
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Direct labour
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direct labour for pre-printing
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48 000 F
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42 000 F
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48 000 F
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42 000 F
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48 000 F
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228 000 F
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direct labour for copy
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5 000 F
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4 500 F
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4 500 F
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5 000 F
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5 000 F
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24 000 F
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direct labour for imposition
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18 000 F
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15 000 F
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18 000 F
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15 000 F
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18 000 F
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84 000 F
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direct labour for printing works
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135 000 F
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112 500 F
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135 000 F
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112 500 F
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135 000 F
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630 000 F
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direct labour for edition
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102 000 F
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102 000 F
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102 000 F
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102 000 F
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102 000 F
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510 000 F
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Total labour costs
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308 000 F
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276 000 F
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307 500 F
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276 500 F
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308 000 F
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1 476 000 F
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Variable factory overhead costs
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water bills (variable)
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14 000 F
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12 000 F
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15 000 F
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13 600 F
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13 000 F
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67 600 F
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electricity bills (variable)
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42 000 F
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45 000 F
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40 000 F
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43 000 F
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40 000 F
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210 000 F
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spare parts (variable)
|
85 000 F
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100 000 F
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110 000 F
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60 000 F
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63 000 F
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418 000 F
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Total Variable factory exp.
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141 000 F
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157 000 F
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165 000 F
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116 600 F
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116 000 F
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695 600 F
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Variable cost of goods to be sold
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2 789 810 F
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2 486 270 F
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2 835 180 F
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2 641 180 F
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3 181 110 F
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13 933 550 F
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Variable selling and admin. Costs
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variable admin. Exp.
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250 000 F
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300 000 F
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350 000 F
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250 000 F
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200 000 F
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1 350 000 F
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variable selling exp.
|
200 000 F
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150 000 F
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250 000 F
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150 000 F
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200 000 F
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950 000 F
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Total variable selling and admin. Exp.
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450 000 F
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450 000 F
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600 000 F
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400 000 F
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400 000 F
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2 300 000 F
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Total cost of goods sold
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3 239 810 F
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2 936 270 F
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3 435 180 F
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3 041 180 F
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3 581 110 F
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16 233 550 F
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Units produced
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10 000
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10 000
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10 000
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10 000
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10 000
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50 000 F
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Daily unit cost
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324 F
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294 F
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344 F
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304 F
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358 F
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325 F
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Unit cost 325 F
Source: The author
JOB COST SHEET: Marginal costing
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Job number: 1
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Start date: 01st august 2002
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Department: printing
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Delivery date: 05th august 2002
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Item: Five-day production of CT
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Units completed: 50 000
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Direct Materials
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Direct Labour
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Requisition N°
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Amount
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Type of labour
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Ticket
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Hours
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Amount
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paper 100
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6 158 250 F
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Direct labour for pre-printing
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1
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39,5
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228 000 F
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black ink 101
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700 000 F
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Direct labour for copy
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2
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9,8
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24 000 F
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blue ink 102
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100 000 F
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Direct labour for soaking
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3
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14
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84 000 F
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red ink 103
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150 000 F
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Direct labour for printing works
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4
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14
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630 000 F
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yellow ink 104
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100 000 F
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Direct labour for edition
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5
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35
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510 000 F
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photographic sheet 104
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2 500 000 F
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Total C/F
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1 476 000 F
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photographic film 105
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300 000 F
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Sheet Developer 106
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396 000 F
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EXPENSES
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Manufacturing Overheads
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Film developer 107
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45 000 F
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Description
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Amount
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Type
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Hours
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Rate
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Amount
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Film fixing liquid 108
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45 000 F
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Water
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80
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845 F
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67 600 F
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sheet proofreader 109
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10 800 F
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Variable admin. Exp.
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1 350 000 F
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Electricity
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80
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2 625 F
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210 000 F
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eraser 110
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|
16 000 F
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Variable selling exp.
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950 000 F
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Spare parts
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80
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5 162 F
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418 000 F
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soaking solution 111
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120 000 F
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sheet cleaner 112
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62 400 F
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Total C/F
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2 300 000 F
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Total C/F
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695 600 F
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tracing paper 113
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50 000 F
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photocopy paper A4 114
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90 000 F
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photocopy paper A3 115
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17 500 F
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Job cost Summary
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transparent sellotape 116
|
1 400 F
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Direct materials
|
11 761 950 F
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|
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packaging sellotape 117
|
5 600 F
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Direct Labour
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1 476 000 F
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packaging string 118
|
13 500 F
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Manufacturing Overheads
|
695 600 F
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white glue 119
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3 500 F
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Selling and Admin. Exp.
|
2 300 000 F
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industrial rag 120
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70 000 F
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Total Cost
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16 233 550 F
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soap paste 121
|
3 000 F
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Unit product cost
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325 F
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toner cartridge HP1200 122
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720 000 F
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toner cartridge HP5000 123
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54 000 F
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toner cartridge HP8500-black124
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6 000 F
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toner cartridge HP8500-blue 125
|
6 000 F
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toner cartridge HP8500-Red 126
|
6 000 F
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toner cartridgeHP8500-yellow 127
|
6 000 F
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drummer KitC4153A 128
|
6 000 F
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Total C/F
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11 761 950 F
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Source: the author
Graphically, the situation can be represented as follows:
Figure 4-3 Evolution of the unit cost (variable
costing)
Source: The author
Using variable costing, the mean unit cost is therefore 325F
The standard deviation is
Given all these information that can be summarised in the
following table, we can now start with the analysis part of this chapter.
Table 4-11 Recap of the
information
|
ABSORPTION COSTING
|
VARIABLE COSTING
|
MEAN UNIT COST
|
474 F
|
325 F
|
STANDARD DEVIATION
|
33.04 F
|
26.74F
|
Source: the author
|