...REFERENCES 12 INTRODUCTION AND MAIN ISSUES Danshui was a contract manufacturer that assembled electronic products for companies wishing to save labour costs by locating in southern China. Because of high demand for iPhone 4, Apple had contracted with Danshui to assemble iPhone in Plant No. 2. The contract need Danshui to assemble 2.4 million iPhone in the period between June 1, 2010 and May 31, 2011. Wentao Chen, manager of Danshui Plant No. 2 was worried because in the third month of the contract production was only 180,000 units per month. Suppose to produce 2.4 million iPhone its need 200,000 units per month. After preliminary budget has come out, the company loss of $672,000. The main issue of this case is the break contract between Danshui and Apple. The contract called Danshui to assemble 2.4 million in the period of one year, but Danshui only can produce 180,000 units per months. If Danshui still can produce that amount, it can’t reach 2.4 million in one year. This might happen because Danshui cannot find people to hire, even though they have raised wages by almost 30%. Another reason is they have problem with the Samsung flash memory installation. One thousand flash memories were damaged in August. Samsung is aware of this problem and has begun to install a shield to prevent the damage. However, it is just for prevention in the short time. Due to the contract has not been fulfilled, Danshui may be needed to pay back a lot of money for the contract and...
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...Solution to Danshui Case Danshui Plant No.2 1. Variable Costs = Material Cost + Labor Cost + Shipping Cost = 187.89+13.11+1.06 = 202.06 / Unit Fixed Costs = 729,000 / Month Price = 41,240,000 / 200,000 = 206.2 Contribution Margin = 206.2-202.6 = 4.14 / Unit When it comes to the break even, Contribution margin * Unit(BE) = Fixed Costs. Unit(BE) = 729,000 / 4.14 = 176,086.96, So the break even for Danshui is 176,087. 2. Based on the data in Exhibit 3, Total expected cost / Unit = 41,140,000 / 200,000 = $205.7 / Unit Actual cost / Unit = 38,148,000/180,000 = $211.93 / Unit 3. Flexible Budget | Budget(180,000) | Actual(180,000) | Variance | Revenue | 37,116 | 37,476 | 360 F | Variable Costs: | | | | Materials | | | | Flash memory | 4,860 | 5,249 | 389 U | Application process | 1,935 | 1,935 | | Chips-phone | 2,529 | 2,529 | | Gyroscope | 468 | 468 | | 8 other chips | 12,771 | 12,643 | 128 F | Variable supplies and tools | 11,257.2 | 11,305 | 47.8 U | Subtotal | 33,820,2 | 34,124 | 303.8 U | Labor | | | | Assembly and packaging | 2,359.8 | 3,092 | 732.2 U | Shipping | 190.8 | 191 | 0.2 U | Total variable costs | 36,730.8 | 37,412 | 1041.2 U | Fixed costs: | | | | Factory rent | 400 | 400 | | Machine depreciation | 150 | 150 | | Utility fee and taxes | 52 | 52 | | Supervision | 127 | 134 | 7 U | Total fixed costs | 729 | 736 | 7 U | Total costs | 37,099.8 | 38...
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...Managerial Accounting Case #3 (Danshui Plant No. 2) – Instructions I would like to see all of your calculations as a part of your write-up (except for Question 3). For Q3, please attach any relevant tables as an appendix. Question 1: You’ll use the data provided in the first column of Exhibit 3 to calculate the break-even point (see chapter 3 lecture notes for details). Question 2: You’ll just compute the expected and actual total cost per unit. Question 3: Prepare a table with four columns: (1) flexible budget, (2) actual results, (3) variances, and (4) a column indicating whether a variance is favorable or unfavorable. Attach this table to the end of your write-up. Question 4: You’ll calculate the following: (1) the price and usage variance for the flash memory material cost, (2) the price and usage variance for the labor cost, and (3) the total variance for the overhead cost. Read the August Report (page 3) carefully. In this case, you don’t need the standard labor price information in order to calculate the labor price and usage variance. But, note that the standard labor price (or rate) is $0.92 per hour just in case you cannot figure out how to calculate the variances without using that information. Question 5: Think about the various cost variances (i.e., materials, labor, overhead) you calculated. Which one(s) should be the major concern for the manager? What are the causes of these variances (i.e., price variance or efficiency variance)? How can the manager...
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...Contents INTRODUCTION................................................................................................................................... 1 IDENTIFICATION OF THE MAIN ISSUES OR PROBLEMS............................................................... 2 ANALYSIS OF CASES: ......................................................................................................................... 3 Analysis Of Data ............................................................................................................................. 3 Analysis Of Flexible Budget ............................................................................................................ 4 RECOMMENDATION ........................................................................................................................... 7 Increase Labor’s Wages ................................................................................................................... 7 Giving Reward ................................................................................................................................ 7 Training and Courses ....................................................................................................................... 7 Outsourcing or Sub Contract ............................................................................................................ 8 Overtime Payment ...................................................................................
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...Total Expected Cost per unit |Direct Materials: |Flash Memory | |$ 27.00 | | |Application Processor | |$ 10.75 | | |Chip for Phone Calls | |$ 14.05 | | |Gyroscope | |$ 2.60 | | |Other Chips | |$ 70.95 | |Supplies and Tools: | | |$ 62.54 | |Total Direct Materials Cost: | |$ 187.89 | |Direct Labor: |Assembly and Packing | |$ 13.11 | | |Shipping | |$ 1.06 | |Total Direct Labor Cost: | |$ 14.17 | |Manufacturing Overheard: |Factory Rent |400,000 / 200,000 ...
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...Danshui Plant No.2 1. Variable Costs = Material Cost + Labor Cost + Shipping Cost = 187.89+13.11+1.06 = 202.06 / Unit Fixed Costs = 729,000 / Month Price = 41,240,000 / 200,000 = 206.2 Contribution Margin = 206.2-202.6 = 4.14 / Unit When it comes to the break even, Contribution margin * Unit(BE) = Fixed Costs. Unit(BE) = 729,000 / 4.14 = 176,086.96, So the break even for Danshui is 176,087. 2. Based on the data in Exhibit 3, Total expected cost / Unit = 41,140,000 / 200,000 = $205.7 / Unit Actual cost / Unit = 38,148,000/180,000 = $211.93 / Unit 3. Flexible Budget | Budget(180,000) | Actual(180,000) | Variance | Revenue | 37,116 | 37,476 | 360 F | Variable Costs: | | | | Materials | | | | Flash memory | 4,860 | 5,249 | 389 U | Application process | 1,935 | 1,935 | | Chips-phone | 2,529 | 2,529 | | Gyroscope | 468 | 468 | | 8 other chips | 12,771 | 12,643 | 128 F | Variable supplies and tools | 11,257.2 | 11,305 | 47.8 U | Subtotal | 33,820,2 | 34,124 | 303.8 U | Labor | | | | Assembly and packaging | 2,359.8 | 3,092 | 732.2 U | Shipping | 190.8 | 191 | 0.2 U | Total variable costs | 36,730.8 | 37,412 | 1041.2 U | Fixed costs: | | | | Factory rent | 400 | 400 | | Machine depreciation | 150 | 150 | | Utility fee and taxes | 52 | 52 | | Supervision | 127 | 134 | 7 U | Total fixed costs | 729 | 736 | 7 U | Total costs...
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...Case #3 Danshui Plant No.2 Answers 1. The break-even point for Danshui plant no 2 is 175874.54 units. The calculation of this number is simply from the break-even formula, fixed costs divided by contribution margin per unit. Fixed costs for the plant were 729 000 and the contribution margin is revenue minus variable costs which equals to 829 000 and the CM per unit is 829 000 / 180 000 which is 4,145. The break-even is therefore 175874.54 units. 2. The actual and expected cost per unit was 211,919 and 205,705 respectively. These numbers can be computed simply by dividing the total cost given in preliminary report-Exhibit 3 of the case- by the number of units. For actual cost per units it would be actual total costs which is 38 148 divided by 180 000 which will give 205.705 and for the expected cost per units, it is 41 140 divided by 200 000 which will give 211,919. 3. See exhibit 1 4. The price variance for the flash memory is equal to 362 000, it is calculated by multiplying 181 000 which is the actual quantity by the price difference (29-27) which is 2. The reason why the actual quantity is 181 000 and not 180 000 is because of the fact that in the production process, there were a thousand flash memories that were damaged. Therefore they actually used 181 000 flash memories. The usage variance is 27 000 and it is calculated by multiplying the standard price which is 27 by the quantity difference which is 1 000 (181 000- 180 000). The...
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...Danshui Plant No.2 Case Study Yuli Tang Rui Zhang Due Date: April 9, 2013 1. As we can see from the Exhibit 1, 176,087 Apple iPhone 4’s would have to have been completed for Danshui Plant No.2 to break even. 2. The total expected cost per unit was $205.7 per unit and the actual cost per unit was $211.93 per unit. See Exhibit 2. 3 & 4. The data is showing in the Exhibit 3 & 4. 5. From the data of question 3, the variance of revenue is favorable because Apple increased price of flash memory by $2. However the company didn’t gain profits from the revenue due to the increased price of flash memory provided by Samsung. The variance of flash memory is unfavorable because of two reasons: first reason is the price of each unit raised $2; the second reason is the company damaged 1,000 units of flash memory. So company used more flash memories than expected. The variance of 8 other chips is favorable, we cannot say the amount of chips decreased, so it should be the price of chips went down. The variance of supplies and tools is unfavorable. We think there are two reasons: company used the supplies and tools less efficient which means used more of supplies and tools, or company spend more money on purchase supplies and tools. The variance of labor is unfavorable, due to the wages of labor increased and working hours also increased, it was inefficient. The supervision is unfavorable because of the salary of supervisor increased. In conclusion, the actual net income is...
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...Danshui Plant No.2 1. Variable Costs = Material Cost + Labor Cost + Shipping Cost = 187.89+13.11+1.06 = 202.06 / Unit Fixed Costs = 729,000 / Month Price = 41,240,000 / 200,000 = 206.2 Contribution Margin = 206.2-202.6 = 4.14 / Unit When it comes to the break even, Contribution margin * Unit(BE) = Fixed Costs. Unit(BE) = 729,000 / 4.14 = 176,086.96, So the break even for Danshui is 176,087. 2. Based on the data in Exhibit 3, Total expected cost / Unit = 41,140,000 / 200,000 = $205.7 / Unit Actual cost / Unit = 38,148,000/180,000 = $211.93 / Unit 3. Flexible Budget | Budget(180,000) | Actual(180,000) | Variance | Revenue | 37,116 | 37,476 | 360 F | Variable Costs: | | | | Materials | | | | Flash memory | 4,860 | 5,249 | 389 U | Application process | 1,935 | 1,935 | | Chips-phone | 2,529 | 2,529 | | Gyroscope | 468 | 468 | | 8 other chips | 12,771 | 12,643 | 128 F | Variable supplies and tools | 11,257.2 | 11,305 | 47.8 U | Subtotal | 33,820,2 | 34,124 | 303.8 U | Labor | | | | Assembly and packaging | 2,359.8 | 3,092 | 732.2 U | Shipping | 190.8 | 191 | 0.2 U | Total variable costs | 36,730.8 | 37,412 | 1041.2 U | Fixed costs: | | | | Factory rent | 400 | 400 | | Machine depreciation | 150 | 150 | | Utility fee and taxes | 52 | 52 | | Supervision | 127 | 134 | 7 U | Total fixed costs | 729 | 736 | 7 U | Total costs | 37,099.8 | 38,148 | 1,048.2 U | Net income...
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...1. Danshui Plant No 2 Case Study Free Essays 1 - 30 www.papercamp.com/group/danshui-plant-no-2-case-study/page-0 Search Results for 'danshui plant no 2 case study'. Displaying 1 - 30 of 1,500. Case Studies Of Corporate Firms. : distribution of wafer production lines, 1995 ... 2. Danshui Plant No. 2 Case Study features.rr.com/article/080P6pegST5Zp?q=iPhone 1) Using budget data, 176087 iPhone 4's must be completed on a monthly basis in order for Danshui Plant No. 2 to break even. The first step is to calculate the ... 3. Danshui Plant No. 2 - Harvard Business Review hbr.org/product/danshui-plant-no-2/an/913525-PDF-ENG Sep 28, 2012 – Danshui Plant No. 2 in southern China has a one-year contract with Apple Inc. to assemble 2.4 mil... 4. [PDF] Danshui Plant No. 2 - Cool Tutoring www.cooltutoring.com/uploads/1/1/9/0/.../913525-pdf-eng_copy.pdf File Format: PDF/Adobe Acrobat - Quick View Aug 3, 2010 – In August 2010, Wentao Chen, manager of Danshui Plant No. 2 in southern China, was anxious. The plant was in the third month of a 12-month ... 5. Danshui Plant No. 2 - Case - Harvard Business School www.hbs.edu/faculty/Pages/item.aspx?num=43379 Danshui Plant No. 2 in southern China has a one-year contract with Apple Inc. to assemble 2.4 million iPhones. In the first three months of the contract, the plant ... 6. Danshui Plant No. 2 - Sport Balla www.sportballa.com/2013/03/plant-2-danshui-no - United States Danshui Plant No. 2. Source: Term Paper Warehouse , Mar 31 2013,...
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...With these developments, it is obvious that conflicts between parties of different nationalities occur and liability to tax on income of foreigners especially among those engaging in trading venture. Whilst the laws affecting domicile and residence may be sufficiently settled, it is paramount for courts to pursue a detailed analysis to ascertain specific preliminary issues so as to avoid controversial rulings. Courts often handle numerous financial cases that involve what can be best described as foreign or international elements. In such cases, court must decide whether it has the jurisdiction under the Family Law Act 1975 to make a decision on such cases. In the event that it is determined that the court is invested with the jurisdiction to determine the case, the court has to consider whether there is a system of law in foreign country that also has the jurisdiction to handle the case. As it was addressed in the case Attorney General of New Zealand v Ortiz [1984] AC 1, these benefits and costs to either party if the case resolution is made in foreign country as compared with the apparent country should also be a subject of concern. [1] Legal systems in most countries around the world adopt community property regime, which takes effect at the inception of marriage or at the time of divorce. For instance, California and Massachusetts in the United States have adopted community property regimes that support equal division of assets upon divorce. However, this provision...
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...Adapted from Bernhardt & Kinnear (1988). Cases in marketing management, pp. 6-16. Plano, TX: Business Publications, Inc. Pay careful attention to the following points. They are often used by instructors to evaluate either a written or oral analysis. 1. Be complete. Each area of the situation analysis must be discussed, problems and opportunities identified, alternative presented and evaluated using the situation analysis and relevant financial analysis, and a decision must be made. An analysis that omits part of the situation analysis or only recognizes one alternative is not a good analysis. Second, each area must be covered in-depth and within insight. 2. Avoid rehashing case facts. Every case has a lot of factual information. A good analysis uses facts that are relevant to the situation at hand to make summary points of analysis. A poor analysis just restates or rehashes theses facts without making relevant summary comments. 3. Make reasonable assumptions. Every case is incomplete in terms of some piece of information that you would like to have. A good case analysis must make realistic assumptions to fill in the gaps of information in the case. For example, the case may not describe the purchase decision process for the product of interest. A poor analysis would either omit mentioning this or just state that no information is available. A good analysis would attempt to present this purchase decision process by classifying the product and drawing upon real life...
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...are given. It is understandable then that we should seek out more opportunities to apply our skills and make more positive impacts within our jurisdictions. It is this general attitude that led us to get involved in investigating cold cases. How We Got Started Mark had, for several years, been consulting with our Coroner’s Division as a forensic anthropologist. During this time he came to learn that there were numerous coroners’ cases in which the identity of the decedent was unknown. These cases were kept in three-ring binders on a shelf in the Sergeant’s office. Over the years, in the course of this forensic work, we would discuss these cases and the progress that was being made on them. The conversation usually ran along the lines of us asking “any luck with that 1980 homicide victim?” and the sergeant answering “well, we’ve gotten so many new cases that I haven’t been able to even look at it yet.” This went on for a few years and through two different sergeants. One day we, as a crime analysis unit, were brainstorming about how we could broaden our “client base”, as it were. We had been successful in integrating ourselves into our Investigations Bureau and had been involved in numerous major cases. And, of course, we had always been active in producing tactical and strategic analyses for our patrol personnel. But we knew that we could be doing more, particularly given the size and responsibilities of our agency. It was during...
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...BUSINESS CASE Presented to the Accountancy Department De La Salle University In partial fulfillment Of the course requirements In ACCTBA2 (C33) March 2, 2015 A stakeholder is typically concerned with an organization delivering intended results and meeting its financial objectives. In general, a stakeholder can be one of two types: internal (from within an organization) or external (outside of an organization). The stakeholders in this situation are Lanie Marquez and Tim Rodriguez who are also partners in the retail distribution business and their capital contributions are as follows P500,000 and P300,000 respectively they are an internal stakeholder since they are also the owners. The total Capital of both stakeholders is P800,000 and with a monthly salary for both partners at P15,000 on the assumption that both of them will contribute to manage the business equally. Assuming that both managed the business equally the total salary for the year for Lanie and Tim are P180,000 each. They share profit and loss equally and no interest will be given on capital contributed. The problem for this situation is that Lanie is starting to get concerned with the behavior of her other partner Tim. He only manages the business 50% of the time, which will mean that his salary of P15,000 will need to decrease by also 50% since he does not manage the business equally with his partner. The business has seen a downturn in the profit outcome and for the current financial...
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...Ralph’s Grocery and United Food and Commercial Workers Union The case that I chose for the week 6 critical thinking assignment concerns Ralph’s Grocery Company, located in California. It applies to this week’s material due to the fact that the case involves unlawful suspension and discharge of an employee, as reviewed by the National Labor Relations Board. Background In May 2011, Vittorio Razi was an employee at Ralph’s Grocery and was suspended and terminated after he refused to take a drug test without first consulting with his UFCW Local 324 representative. The company (Respondent) says that on the day in question, Razi’s behavior was in question, acting nervous, anxious, agitated, and slurred speech. After a couple managers discussed the...
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