Kay and Dee Manufacturing (K+D) has five business lines:
- Repair and Overhead (R+O): Repair of truck transmissions.
- Manufacturing: manufacturing of custom truck transmission parts
- Engineering: design of new parts and consulting services
- Chemical Treating: cleaning of old parts
- Material Handling: Handling and storage of direct materials
There are three support departments. Major activities of each department are:
- Human Resources (HR): Payroll, HR staff, employee services, Union/Management relations. Costs for this service department are allocated based on Headcount.
- Facility: buildings, building maintenance and related building costs. Costs for this service department are allocated based on area occupied.
- Main Office (HQ): salaries for the President, VP, and Finance department. Costs for this service department are allocated based on Direct Labour Hours.
Financial information is in Appendix A. Other information is in Appendix B.
Customers are charged based on the following:
- Repair and Overhead (R+O):
[Direct Labour R+O hours] x [R+O fully loaded Direct Labour hourly rate]
[Direct Labour Manufacturing hours] x [Manufacturing fully loaded Direct Labour hourly rate]
[Direct Labour Engineering hours] x [Engineering fully loaded Direct Labour hourly rate]
[Chemical Treating hours] x [Chemical Treating fully loaded hourly rate]
[value of direct materials handled] x [markup on direct materials]
- Direct Material Costs
- profit of 5% on direct materials and material handling costs, and 20% on all other costs
Note: fully loaded rate means the rate includes overheads
Information for Job#582 is as follows:
R+O Hours: 25 hours
Manufacturing hours: 15 hours
Engineering hours: 2 hours
Chemical Treating: 1 hour
Direct Materials: $4,200
A B D E F G H 1 J K 1 FINANCIAL INFORMATION 2 3 GREDI Direct 4 GL300 S Bec Materal 5 al other GL accounts are Overhead HQ Material Handling Chemical Treating HR Building Engineering 4,613,872 4,056,720 145, 288 223,096 31,863 123 2,590,299 482,234 314,607 69 5 8,600 2,589 R+O 3,790,924 6,117,915 461, 110 103,214 1,409 10.151 140 4,016 13,947 489 51,936 680 Manufacturing 22,065, 478 4,785,457 38.550 129,758 73,301 80 167 9,502 44,315 19,450 4.844 138 312 80,862 320,628 220,217 2,012 15,219 31 884 3,232 22 815 5 2 . 28 1,779 1 31,972 27,469 2,469 449 1,339 1,076 268 7.455 18,636 1,340 116,956 7.380 26,879 27,332 112, 112 111,734 36,868 226, 115 521,282 77,751 2,800 537 702 199, 230 1,941 402 40,185 41,614 206, 846 319,647 217,154 171.783 172, 123 387,596 364,461 286,856 27,689 3,485 445,407 3,058 1,911 7.821 7,535 13,313 14,572 25,450 20,393 16,598 8,326 85,223 185,004 35. 197 7,385 11,575 102.959 110,672 104,690 178.750 145 827 720,027 268,305 363.607 212,004 2,650 169 16,878 17,478 86,875 134,252 91,205 72,149 72,292 162,790 2, 153,074 1,120,480 11,629 1,463 387,071 41,284 2,803 62 969 88,585 73,546 8.242 8,398 118,162 59,366 132,004 119,154 186,742 166, 119 461, 173 417,057 412.742 846,463 5,836 982 840 650 1,201 15,874 4,208 2,184 1,518 7,182 4,165 10,615 22 25,223 776,497 244,010 1,040 113,308 27,702 85,153 96,655 17,312 167,962 138,957 134, 142 177,997 4,418 46,470 20,856 90,509 89,210 897 30,000 7.951 361 4,575 182,056 861 67,050 17,000 1,485,060 144,010 57,680 4,800 378,954 19,593 12 245 138,666 20,307 7,571 2,896 86,949 310 12,008 18,828 450 647 11,024 494 6 GL# Expense Name 7 400 Direct Materials 8 500 Direct Labour costs 9 601 Indirect Labour - Plant 10 602 Indirect by Direct - Plant Hourly 11 603 Management Authorized Union Activity 12 604 Indirect by Direct - Tool Repairs 13 605 Indirect by Dir - Assist Maintenance 14 606 Indir X Dir - Assist Support Groups 15 607 Indir X Dir - Meetings 16 608 Indir X Dir - Working Indirect 17 609 Indir X Dir - HR Issues 18 610 Indirect by Direct - General 19 612 Indirect by Direct - Graphics Print 20 615 Ind. Labour-Hrly/Wkly/Biwkly Training 21 620 I X D-Continuous Improvement Time 22 622 Overtime Premium - Hourly 23 623 Vision Care 24 624 Orthodontic Care 25 625 Life / A.D.D. Insurance 26 628 Nightshift Premium 27 629 Employment Insurance 28 630 Workmen's Compensation 29 631 Dental Coverage 30 632 Ontario Health Insurance Plan 31 633 Vacation Pay 32 634 Statuatory Holidays 33 635 Heath 34 637 Pension Plan - Union 35 638 Pension Plan - Non Union 36 639 Recreation Club 37 640 Salaries - Weekly / Blweekly 642 Define Cont. Plan-Empr 4p.c. Base 39 643 Define Cont. Plan-Emplr 50 p.c. Matc 40 647 Absence/Lateness - Staff 41 649 Overtime Premium - Wkly / Biwkly 42 650 Canada Pension Plan 43 654 Safety Shoe Allowance 44 660 Welding Rods 45 661 Operating Supplies 46 662 Lubricants, Solvents & Coolants 663 Stationery & Printing 48 671 Tool Usage 49 674 Electrodes & Accessories 50 681 Light & Power 51 682 Water & Sewage 52 683 Heating - Natural Gas 53 684 Fuel Propane 54 685 Telephone Long Dist. Excl. Equip) 55 691 Furniture & Equip.-Non Capital Aquis 56 693 Maint-Building Heating/Vent/Grounds 57 694 Maintenance - Plant & Machinery 58 696 Maintenance - Company Vehicles 59 698 Janitorial Services 60 710 Travel & Entertainment 61 711 Travel (Meals-50pc) 62 712 Bank Charges 63 714 Education & Training 64 716 Membership Fees 66 720 Donations 66 721 Bank Int. Chargos - Long & Short Ter 67 726 Operating Expense - Comp. Vehicles 68 729 Leased Facilities 69 732 Legal Fees 70 734 Audt Fees 71 736 Consultant Fees 72 740 Miscellaneous 742 Advertising 74 748 Computer Software - PC's 75 761 Insurance 76 762 Municipal Taxes 763 Depreciation 78 806 Miscellaneous Recoveries 79 80 Total Costs for Responsbity Centre 81 1,540 26,248 1,175 736 41,237 74,469 400, 102 9,863 783,798 247,783 13.170 723,640 9.663 261,087 855,900 222 12,316 75 2,161 17,328 154,019 1,602 TOTAL 30,470,274 14,960,091 3,778,971 935,422 423,304 105.605 9,696 57,814 39,218 5,353 192,869 113,515 30,269 151,647 280, 126 520,958 42,109 22,803 411,175 245,003 682,630 816,555 853,024 1,360,220 1,057,688 1,756,132 3,607,135 3,275,737 462, 365 36,982 3.130,735 249, 108 172,720 89,432 43,472 1,296,867 32,068 1,062,949 1,380,431 137,347 111,186 613,880 2,286 232,161 154,309 216,029 122,286 87.896 47,883 196,214 544,281 158, 251 294,225 191,263 39,633 82,393 64,352 49,548 2,796 301, 109 10,920 (425) 424,504 85,231 481,806 287, 196 36 5,951 201,951 432,736 2,046,261 (42,788) 295 22,743 41,134 17,320 61,277 673 1,425 109,088 136 341, 340 260,088 2,211 12,316 75 232, 161 17,328 154,019 136,981 62.010 122,286 5,565 1,602 890 24.56! 1,516 38,124 44,483 15,632 3,400 - 1,109 10,760 7,130 23,936 195, 105 502,456 158, 251 294 225 66,978 4,857 6,426 7,218 353 31,692 2,512 5,148 1,024 18,260 4,120 112,211 31,854 82,393 29,124 22.019 2,796 301, 109 10,760 (425) 374,714 85,231 311,692 209,836 - 160 - 27,650 22, 140 8,683 31,759 75,000 8,601 24,960 235 1,130 500 60,350 11,368 36 756 24,298 600 3,800 1,396 201,951 432,736 526, 223 (39,000) 54,002 186,982 255,503 46,200 23,929 (2,733) 849,420 (1,006) 104,002 (50) 4,901,398 777,199 9,198,554 5,606,073 16,179,253 33,923,386 845,325 10,312,981 81,744 150 Other information Material Chemical Summary Information HQ HR Building Handling R+O Manufacturing Treating Engineering Direct Labour (hours) 0 0 225,000 237,422 1402 106,250 Page 9 O Processing Time 0 0 0 1,820 0 Headcount (employees) 8 7 15 12 180 350 1 45 Floorspace (square feet) 3,005 2,200 19,600 6,250 540,000 360,000 28,483 11,000 A B D E F G H 1 J K 1 FINANCIAL INFORMATION 2 3 GREDI Direct 4 GL300 S Bec Materal 5 al other GL accounts are Overhead HQ Material Handling Chemical Treating HR Building Engineering 4,613,872 4,056,720 145, 288 223,096 31,863 123 2,590,299 482,234 314,607 69 5 8,600 2,589 R+O 3,790,924 6,117,915 461, 110 103,214 1,409 10.151 140 4,016 13,947 489 51,936 680 Manufacturing 22,065, 478 4,785,457 38.550 129,758 73,301 80 167 9,502 44,315 19,450 4.844 138 312 80,862 320,628 220,217 2,012 15,219 31 884 3,232 22 815 5 2 . 28 1,779 1 31,972 27,469 2,469 449 1,339 1,076 268 7.455 18,636 1,340 116,956 7.380 26,879 27,332 112, 112 111,734 36,868 226, 115 521,282 77,751 2,800 537 702 199, 230 1,941 402 40,185 41,614 206, 846 319,647 217,154 171.783 172, 123 387,596 364,461 286,856 27,689 3,485 445,407 3,058 1,911 7.821 7,535 13,313 14,572 25,450 20,393 16,598 8,326 85,223 185,004 35. 197 7,385 11,575 102.959 110,672 104,690 178.750 145 827 720,027 268,305 363.607 212,004 2,650 169 16,878 17,478 86,875 134,252 91,205 72,149 72,292 162,790 2, 153,074 1,120,480 11,629 1,463 387,071 41,284 2,803 62 969 88,585 73,546 8.242 8,398 118,162 59,366 132,004 119,154 186,742 166, 119 461, 173 417,057 412.742 846,463 5,836 982 840 650 1,201 15,874 4,208 2,184 1,518 7,182 4,165 10,615 22 25,223 776,497 244,010 1,040 113,308 27,702 85,153 96,655 17,312 167,962 138,957 134, 142 177,997 4,418 46,470 20,856 90,509 89,210 897 30,000 7.951 361 4,575 182,056 861 67,050 17,000 1,485,060 144,010 57,680 4,800 378,954 19,593 12 245 138,666 20,307 7,571 2,896 86,949 310 12,008 18,828 450 647 11,024 494 6 GL# Expense Name 7 400 Direct Materials 8 500 Direct Labour costs 9 601 Indirect Labour - Plant 10 602 Indirect by Direct - Plant Hourly 11 603 Management Authorized Union Activity 12 604 Indirect by Direct - Tool Repairs 13 605 Indirect by Dir - Assist Maintenance 14 606 Indir X Dir - Assist Support Groups 15 607 Indir X Dir - Meetings 16 608 Indir X Dir - Working Indirect 17 609 Indir X Dir - HR Issues 18 610 Indirect by Direct - General 19 612 Indirect by Direct - Graphics Print 20 615 Ind. Labour-Hrly/Wkly/Biwkly Training 21 620 I X D-Continuous Improvement Time 22 622 Overtime Premium - Hourly 23 623 Vision Care 24 624 Orthodontic Care 25 625 Life / A.D.D. Insurance 26 628 Nightshift Premium 27 629 Employment Insurance 28 630 Workmen's Compensation 29 631 Dental Coverage 30 632 Ontario Health Insurance Plan 31 633 Vacation Pay 32 634 Statuatory Holidays 33 635 Heath 34 637 Pension Plan - Union 35 638 Pension Plan - Non Union 36 639 Recreation Club 37 640 Salaries - Weekly / Blweekly 642 Define Cont. Plan-Empr 4p.c. Base 39 643 Define Cont. Plan-Emplr 50 p.c. Matc 40 647 Absence/Lateness - Staff 41 649 Overtime Premium - Wkly / Biwkly 42 650 Canada Pension Plan 43 654 Safety Shoe Allowance 44 660 Welding Rods 45 661 Operating Supplies 46 662 Lubricants, Solvents & Coolants 663 Stationery & Printing 48 671 Tool Usage 49 674 Electrodes & Accessories 50 681 Light & Power 51 682 Water & Sewage 52 683 Heating - Natural Gas 53 684 Fuel Propane 54 685 Telephone Long Dist. Excl. Equip) 55 691 Furniture & Equip.-Non Capital Aquis 56 693 Maint-Building Heating/Vent/Grounds 57 694 Maintenance - Plant & Machinery 58 696 Maintenance - Company Vehicles 59 698 Janitorial Services 60 710 Travel & Entertainment 61 711 Travel (Meals-50pc) 62 712 Bank Charges 63 714 Education & Training 64 716 Membership Fees 66 720 Donations 66 721 Bank Int. Chargos - Long & Short Ter 67 726 Operating Expense - Comp. Vehicles 68 729 Leased Facilities 69 732 Legal Fees 70 734 Audt Fees 71 736 Consultant Fees 72 740 Miscellaneous 742 Advertising 74 748 Computer Software - PC's 75 761 Insurance 76 762 Municipal Taxes 763 Depreciation 78 806 Miscellaneous Recoveries 79 80 Total Costs for Responsbity Centre 81 1,540 26,248 1,175 736 41,237 74,469 400, 102 9,863 783,798 247,783 13.170 723,640 9.663 261,087 855,900 222 12,316 75 2,161 17,328 154,019 1,602 TOTAL 30,470,274 14,960,091 3,778,971 935,422 423,304 105.605 9,696 57,814 39,218 5,353 192,869 113,515 30,269 151,647 280, 126 520,958 42,109 22,803 411,175 245,003 682,630 816,555 853,024 1,360,220 1,057,688 1,756,132 3,607,135 3,275,737 462, 365 36,982 3.130,735 249, 108 172,720 89,432 43,472 1,296,867 32,068 1,062,949 1,380,431 137,347 111,186 613,880 2,286 232,161 154,309 216,029 122,286 87.896 47,883 196,214 544,281 158, 251 294,225 191,263 39,633 82,393 64,352 49,548 2,796 301, 109 10,920 (425) 424,504 85,231 481,806 287, 196 36 5,951 201,951 432,736 2,046,261 (42,788) 295 22,743 41,134 17,320 61,277 673 1,425 109,088 136 341, 340 260,088 2,211 12,316 75 232, 161 17,328 154,019 136,981 62.010 122,286 5,565 1,602 890 24.56! 1,516 38,124 44,483 15,632 3,400 - 1,109 10,760 7,130 23,936 195, 105 502,456 158, 251 294 225 66,978 4,857 6,426 7,218 353 31,692 2,512 5,148 1,024 18,260 4,120 112,211 31,854 82,393 29,124 22.019 2,796 301, 109 10,760 (425) 374,714 85,231 311,692 209,836 - 160 - 27,650 22, 140 8,683 31,759 75,000 8,601 24,960 235 1,130 500 60,350 11,368 36 756 24,298 600 3,800 1,396 201,951 432,736 526, 223 (39,000) 54,002 186,982 255,503 46,200 23,929 (2,733) 849,420 (1,006) 104,002 (50) 4,901,398 777,199 9,198,554 5,606,073 16,179,253 33,923,386 845,325 10,312,981 81,744 150 Other information Material Chemical Summary Information HQ HR Building Handling R+O Manufacturing Treating Engineering Direct Labour (hours) 0 0 225,000 237,422 1402 106,250 Page 9 O Processing Time 0 0 0 1,820 0 Headcount (employees) 8 7 15 12 180 350 1 45 Floorspace (square feet) 3,005 2,200 19,600 6,250 540,000 360,000 28,483 11,000
