8 -1
CHAPTER
Functional
and ActivityBased
Budgeting
Planning
8 -2
Strategic Plan
Long-Term
Objectives
Short-Term
Objectives
Short-Term
Plan
Budgets
Feedback
Budgeting,
Planning
and Control
Planning
Strategic Plan
Long-Term
Objectives
Control
Monitoring of
Actual Activity
Short-Term
Objectives
Short-Term
Plan
Budgets
Feedback
Comparison of
Actual with
Planned
Investigation
Corrective Action
8 -3
8 -4
Advantages of Budgeting
1. It forces managers to plan.
2. It provides information that can be used
to improve decision making.
3. It provides a standard for performance
evaluation.
4. It improves communication and
coordination.
8 -5
Master budget adalah rencana keuangan
komprehensif bagi organisasi secara keseluruhan.
Biasanya, master budget untuk satu tahun,
sesuai dengan tahun fiskal perusahaan.
8 -6
Master budget dapat
dibagi menjadi anggaran
operasi dan anggaran
finansial.
8 -7
Operational Budget
Operating
budgets aktivitas
describe
mendeskripsikan
theyang
income-generating
menghasilkan
activitiesbagi
of aperusahaan.
firm.
pendapatan
8 -8
Financial budgets merinci
Operating
budgets
describe
aliran masuk
dan keluar
kas
the
income-generating
serta
posisi keuangan
activities
of a firm.
keseluruhan.
8 -9
Preparing the Operating Budget
Sales budget
Production budget
Direct materials purchases budget
Direct labor budget
Overhead budget
Selling and administrative expenses
budget
Ending finished goods inventory budget
Cost of goods sold budget
8 -10
Schedule 1
Texas Rex, Inc.
Sales Budget
For the Year Ended December 31, 2004
Quarter
1
2
3
4
Year
Units
1,000
1,200
1,500
2,000
5,700
Unit selling price x $10 x $10 x $10 x $10 x $10
Budgeted sales $10,000 $12,000 $15,000 $20,000 $57,000
8 -11
Menghitung Unit yang diproduksi
Unit diproduksi
= Perkiraan unit penjualan +
Unit Persediaan akhir –
Unit Persediaan awal
8 -12
Schedule 2
Texas Rex, Inc.
Production Budget
For the Year Ended December 31, 2004
Quarter
1
2
3
4
Sales (Schedule 1)
1,000 1,200
1,500 2,000
Persediaan akhir
yang diharapkan
240
300
400
200
Total Kebutuhan
1,240 1,500
1,900 2,200
Less: Persediaan
awal
-180
-240
-300
-400
Units yang
diproduksi
1,060 1,260
1,600
1,800
Year
5,700
200
5,900
-180
5,720
8 -13
Perhitungan Unit yang dibeli
Pembelian = Kebutuhan Bahan baku +
Persediaan akhir bahan
baku – Persediaan awal
Bahan baku
8 -14
Schedule 3
Texas Rex, Inc.
Direct Materials Purchases Budget
For the Year Ended December 31, 2004
Quarter
1
2
3
4
Unit diproduksi
(Schedule 2)
Bahan baku per
unit
Kebutuhan Produksi
Persediaan akhir
diharapkan
Total kebutuhan
Year
1,060
1,260
1,600
1,800
5,720
x 1
1,060
x 1
1,260
x 1
1,600
x 1
1,800
x 1
5,720
126
1,186
160
1,420
180
1,780
106
1,906
106
5,826
Continued
8 -15
1
Total Kebutuhan 1,186
Less: persediaan
awal
-58
Bahan baku yang
dibeli
1,128
Biaya per unit
x $3
Total pembelian
kaos polos
$3,384
Quarter
2
3
4
Year
1,420
1,780
1,906
5,826
-126
-160
-180
-58
1,294
x $3
1,620
x $3
1,726
5,768
x $3 x
$3
$3,882
$4,860
$5,178 $17,304
8 -16
Schedule 3
Texas Rex, Inc.
Direct Materials Purchases Budget
For the Year Ended December 31, 2004
Quarter
1
2
3
4
Unit diproduksi
(Schedule 2)
Bahan baku per
unit
Kebutuhan Produksi
Persediaan akhir
diharapkan
Total kebutuhan
Year
1,060
1,260
1,600
1,800
5,720
x 5
5,300
x 5
6,300
x 5
8,000
x 5
9,000
x
5
28,600
630
5,930
800
7,100
900
8,900
530
9,530
530
29,130
Continued
8 -17
1
Quarter
2
3
4
Total kebutuhan 5,930
7,100
8,900
9,530
Less: persediaan
awal
-390
-630
-800
-900
Bahan baku
dibeli
5,540
6,470
8,100
8,630
Biaya per ons tinta x $0.20 x $0.20 x $0.20 x $0.20
Total pembelian
tinta
$ 1,108 $ 1,294 $ 1,620 $ 1,726
Total biaya pembelian
bahan baku
$4,492
$5,176
$6,480
Year
29,130
-390
28,740
x $0.20
$ 5,748
$6,904 $23,052
8 -18
Schedule 4
Texas Rex, Inc.
Direct Labor Budget
For the Year Ended December 31, 2004
Quarter
1
2
3
4
Unit diproduksi
(Schedule 2)
1,060
1,260
1,600
1,800
Tenaga Kerja Lgs
per unit (jam)
x 0.12 x 0.12 x 0.12 x 0.12
Total jam dibutuhkan127.2
151.2
192
216
Rata-rata upah per
jam
x $10 x $10 x $10 x $10
Total Biaya Tenaga
kerja langsung
$1,272 $1,512 $1,920 $2,160
Year
5,720
x 0.12
686.4
x $10
$6,864
8 -19
Schedule 5
Texas Rex, Inc.
Overhead Budget
For the Year Ended December 31, 2004
Quarter
1
2
3
4
Jam tenaga kerja lgs
dianggarkan
127.2
Tarif overhead
Variabel
x $5
Overhead variable
dianggarkan
$ 636
Overhead tetap
dianggarkan
1,645
Total overhead $2,281
151.2
x
$5
192
x
$5 x
Year
216
$5
686.4
x
$5
$ 756
$ 960 $1,080 $ 3,432
1,645
$2,401
1,645 1,645
6,580
$2,605 $2,725 $10,012
8 -20
Schedule 6
Texas Rex, Inc.
Ending Finished Goods Inventory Budget
For the Year Ended December 31, 2004
Penghitungan biaya per unit:
Direct materials ($3 + $1)
Direct labor (0.12 hr. @ $10)
Overhead:
Variable (0.12 hr. @ $5)
Fixed (0.12 hr. @ $9.59)
Total unit cost
Units
Finished goods: Kaos ber-Logo
200
$4.00
1.20
0.60
1.15
$6.95
Unit Cost
$6.95
Total
$1,390
8 -21
Schedule 7
Texas Rex, Inc.
Cost of Goods Sold Budget
For the Year Ended December 31, 2004
Direct materials used (Schedule 3)
Direct labor used (Schedule 4)
Overhead (Schedule 5)
Budgeted manufacturing costs
Beginning finished goods
Goods available for sale
Less: Ending finished goods (Sched. 6)
Budgeted cost of goods sold
$22,880
6,864
10,012
$39,756
1,251
$41,007
- 1,390
$39,617
8 -22
Schedule 8
Texas Rex, Inc.
Selling and Administrative Expenses Budget
For the Year Ended December 31, 2004
1
Quarter
2
3
4
Year
Planned sales in units
(Schedule 1)
1,000 1,200 1,500 2,000 5,700
Variable selling and
administrative
expenses per unit
x $0.10 x $0.10 x $0.10 x $0.10 x $0.10
Total variable
expenses
$ 100 $ 120 $ 150 $ 200 $ 570
Continued
8 -23
1
Quarter
2
3
4
Year
Fixed selling and administrative expenses:
Salaries
$1,420 $1,420 $1,420 $1,420 $5,680
Utilities
50
50
50
50
200
Advertising
100
200
300
500 1,100
Depreciation
150
150
150
150
600
Insurance
----500
--500
Total fixed expenses $1,720 $1,820 $2,420 $2,120 $8,080
Total selling and administrative expenses
$1,820 $1,940 $2,570 $2,320 $8,650
8 -24
Schedule 9
Texas Rex, Inc.
Budgeted Income Statement
For the Year Ended December 31, 2004
Sales (Schedule 1)
Less: Cost of goods sold (Schedule 7)
Gross margin
Less: Selling and administrative
expenses (Schedule 8)
Operating income
Less: Interest expense (Schedule 10)
Income before taxes
Less: Income taxes (Schedule 10)
Net income
$57,000
-39,617
$17,383
-8,660
$ 8,733
- 60
$ 8,673
-2,550
$ 6,123
8 -25
Mempersiapkan
Financial Budgets
 The cash budget
 The budgeted
balance sheet
 The budget for
capital expenditures
8 -26
The Cash Budget
Saldo Awal Kas
Add: Penerimaan Kas
Kas tersedia
Less: Pengeluaran Kas
Less: saldo Kas Minimum
Surplus (defisit) Kas
Add: Kas dari pinjaman
Less: Pembayaran pinjaman
Add: saldo kas minimum
Saldo Kas Akhir
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
8 -27
The Cash Budget
Texas Rex, Inc. 1st Quarter
Beginning cash balance
$ 5,200
Add: Cash receipts (cash and credit sales) 10,600
Total cash available
15,800
Less: Cash disbursements
-15,777
Less: Minimum cash balance
- 1,000
Total cash needs
-16,777
Excess or deficiency (-) of cash
- 977
Add: Cash from loans
1,000
Less: Loan repayments
---Ending cash balance
$ 1,023
$1,000 (loan) - $977 + $1,000
(minimum cash balance)
8 -28
Source
Texas Rex, Inc.
Cash Receipts Pattern for 2004
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Cash sales
$ 2,500
Received on
account from:
Quarter 4, 2003
1,350
Quarter 1, 2004
6,750
Quarter 2, 2004
Quarter 3, 2004
Quarter 4, 2004
---Total cash receipts $10,600
$ 3,000
750
8,100
---$11,850
$ 3,750
$ 5,000
900
10,125
--$14,775
1,125
13,500
$19,625
Schedule 11
Texas Rex, Inc.
Budgeted Balance Sheet
December 31, 2004
8 -29
Assets
Current assets:
Cash
Accounts receivable
Materials inventory
Finished goods inventory
Total current assets
Property, plant, and equipment:
Land
Building and equipment
Accumulated depreciation
Total property, plant, and equipment
Total assets
Continued
$ 7,503
1,500
424
1,390
$10,817
$ 1,100
36,500
-7,760
29,840
$40,657
8 -30
Liabilities and Owners’ Equity
Current liabilities:
Accounts payable
Owners’ equity:
Retained earnings
$39,276
Total owners’ equity
Total liabilities and owners’ equity
$ 1,381
39,276
$40,657
8 -31
Sales Budget
Production Budget
Direct Materials
Purchases Budget
Direct Labor
Budget
Cash
Budget
Overhead
Budget
The Master
Budget
8 -32
Sales Budget
Production Budget
Direct Materials
Purchases Budget
Ending FG
Inventory Budget
Direct Labor
Budget
Overhead
Budget
(Unit
cost)
Cash
Budget
The Master
Budget
8 -33
Sales Budget
Production Budget
Direct Materials
Purchases Budget
Direct Labor
Budget
Ending FG
Inventory Budget
Overhead
Budget
Selling and
Administrative
Expenses
Budget`
Cost of Goods
Sold Budget
Budgeted IS
Cash
Budget
The Master
Budget
8 -34
Static Budgets versus Flexible Budgets
A static budget adalah anggaran untuk tingkat aktivitas
tertentu.
A flexible budget adalah anggaran yang memungkinkan
suatu perusahaan untuk menghitung perkiraan biaya
dalam suatu tingkat aktivitas.
Performance Report Quarterly
Production Costs
Actual
Units produced
Direct materials cost
Direct labor costs
Fixed overhead:
Variable:
Supplies
Power
Fixed:
Supervision
Depreciation
Total
8 -35
Budgeted Variance
1,200
1,060
140 F
$4,830
1,440
$4,240
1,272
$590 U
168 U
535
170
477
159
58 U
11 U
1,055
540
$8,570
1,105
540
$7,793
-50 F
--$777 U
8 -36
The Uses of Flexible Budget
 The flexible budget can be used to prepare the budget
before the fact for the expected level of activity.
 Flexible budgeting can be used to compute what costs
should have been for the actual level of activity.
 Flexible budgeting can help managers deal with
uncertainty by allowing them to see the expected
outcomes for a range of activities.
Flexible Production Budget
Production Costs
Variable overhead:
Direct materials
Direct labor
Variable overhead:
Supplies
Power
Total variable costs
Fixed overhead:
Supervision
Depreciation
Total fixed costs
Total production costs
Variable Cost
per Unit
Range of Production (units)
1,000
1,200
1,400
$4.00
1.20
$4,000
1,200
$4,800 $5,600
1,440 1,680
0.45
0.15
$5.80
450
150
$5,800
540
630
180
210
$6,960 $8,120
$1,105
540
$1,645
$7,445
$1,105 $1,105
540
540
$1,645 $1,645
$8,605 $9,765
8 -37
Performance Report Quarterly
Production Costs
Units produced
Direct materials
Direct labor
Variable overhead:
Supplies
Power
Total variable costs
8 -38
Actual
Budget
1,200
1, 200
----
$4,830
1,440
$4,800
1, 440
$30 U
----
535
170
$6,975
540
180
$6,960
-5 F
-10 F
$15 F
Continued
Variance
Performance Report Quarterly
Production Costs
8 -39
Actual
Budget
1,200
1, 200
----
Fixed overhead:
Supervision
1,055
Depreciation
540
Total fixed costs
$1,595
Total production costs $8,570
1,105
540
$1,645
$8,605
-50 F
---$50 F
$35 U
Units produced
Variance
8 -40
Behavior Dimensions of Budgeting
Goal congruence
Dysfunctional behavior
Frequent feedback on performance
Monetary and nonmonetary incentives
Participative budgeting
Realistic standards
Controllability of costs
Multiple measures of performance
8 -41
Participative budgeting has three
potential problems:
1. Setting standards that are either too high
or too low.
2. Building slack into the budget.
3. Pseudoparticipation.
Activity-Based Budgeting
Activity flexible
budgeting is the
prediction of what
activity costs will
be as activity
output changes.
8 -42
8 -43
Flexible Budget: Direct Labor Hours
Cost Formula
Fixed
Direct Labor Hours
Variable
10,000
20,000
Direct materials
---
$10
$100,000
$200,000
Direct labor
---
8
80,000
160,000
$ 20,000
3
50,000
80,000
Machining
15,000
1
25,000
35,000
Inspections
120,000
---
120,000
120,000
50,000
---
50,000
50,000
220,000
---
220,000
220,000
$425,000
$22
$645,000
$865,000
Maintenance
Setups
Purchasing
Total
8 -44
Activity Flexible Budget
Driver: Direct Labor Hours
Formula
Fixed
Variable
Level of Activity
10,000
20,000
Direct materials
---
$10
$100,000
$200,000
Direct labor
---
8
80,000
160,000
$0
$18
$180,000
$360,000
Subtotal
Driver: Machine Hours
Maintenance
Machining
Subtotal
Fixed
Variable
8,000
16,000
$20,000
$5.50
$64,000
$108,000
15,000
2.00
31,000
47,000
$35,000
$7.50
$95,000
$155,000
Continued
8 -45
Activity Flexible Budget
Driver: Number of Setups
Inspections
Fixed
Variable
25
30
$80,000
$2,100
$132,500
$143,000
---
1,800
45,000
54,000
$80,000
$3,900
$177,500
$197,000
15,000
25,000
$226,000
$236,000
$678,500
$948,000
Setups
Subtotal
Driver: Number of Orders
Fixed
Purchasing
Total
$211,000
Variable
$
1
8 -46
Activity-Based Performance Report
Actual Costs
Budgeted Costs
Budget Variance
$101,000
$100,000
$ 1,000 U
Direct labor
80,000
80,000
---
Maintenance
55,000
64,000
9,000 F
Machining
29,000
31,000
2,000 F
Inspections
125,500
132,500
7,000 F
46,500
45,000
1,500 U
220,000
226,000
6,000 F
$657,000
$678,500
$21,500 F
Direct materials
Setups
Purchasing
Total
8 -47
Variances for the Inspection Activity
Activity
Actual Cost
Budgeted Cost
Variance
Inspection:
Fixed
Variable
Total
$ 82,000
$ 80,000
$2,000 U
43,500
52,500
9,000 F
$125,500
$132,500
$7,000 F
8 -48
Chapter Eight
The End
8 -49