Exercise page 20

PT. Sumber Sandang is a producer of mens shirt which is located in Bandung. In order to make a company budget for year 2009, on October 2008 accounting department gather all the data needed. For 2009, the company is planning to produce 60,000 shirts. To produce one shirt, the company needs 2 meters of fabric. The price of the fabric which is a raw material for the shirt is estimated to be Rp. 10,000 per meter. In another hand, the wage which will be given to the tailor is Rp. 5,000 per shirt. Overhead cost which is needed for the companys volume production is Rp. 400,000,000. 40% of the overhead cost isestimated to be a variable cost and the rest will be a fixed cost. Moreover, the marketing cost will be charged Rp. 600,000,000 which 20 % of it will be a variable cost and the rest will be a fixed cost. General and administrative cost will cost Rp. 300,000,000 which all of them will be a fixed cost.

Please calculate Fixed cost and Variable cost of PT. SumberSandang!

Exercise 2.2

PT. Gemah Ripah is a company which produces shirts and located in Jakarta. Direct raw material that they usually use is fabric. Also, there are buttons, thread and accessories for the additional materials. Moreover, the tailors are the labors which directly involved in the production process. In this company, the location of administration office, marketing office, and factory are separated from one another.

In the end of August 2006, a new accounting staff arranges a cost budget for September 2006 :

Fabric Cost	97,000,000
Buttons Cost	4,700,000
Thread Cost	9,900,000
Accessories Cost	6,600,000
Tailors wage	27,000,000
Production Managers Salary	4,700,000
Factory Securitys Salary	1,200,000
Sales Persons Salary	2,000,000
Sales Persons Commission	6,000,000
Marketing office employees Salary	8,200,000
Administration employees Salary	7,400,000
Factory utility cost	7,400,000
Marketing office utility cost	3,400,000
Administration office utility cost	4,700,000
Interest cost	14,500,000
Factory building depreciation cost	2,600,000
Marketing office building depreciation cost	1,200,000
Administration office building depreciation cost	1,300,000
Factory machine depreciation cost	2,600,000
Marketing transportation depreciation cost	900,000
Director transportation depreciation cost	700,000
Sales distribution cost	2,900,000
Advertisement cost	9,400,000

From the data above, calculate :

a. Production Cost Budget for PT. Gemah Ripah for September 2006!

b. Operational Cost Budget for PT. Gemah Ripah for September 2006!