Financial Performance Management

FINANCIAL
PERFORMANCE
MANAGEMENT

Table of Contents
Question: 1...................................................................................................................................3
D) Sensitivity analysis role in uncertainties.................................................................................4
Question: 2...................................................................................................................................5
Question: 3...................................................................................................................................7
Planning coordination and control...............................................................................................7
REFERENCES................................................................................................................................1

Question: 1
Particulars Lip-balm Lip Stick lip-gloss
 No. Of units produced
 Per unit cost of direct material
 Direct labor hours per unit
 Labor cost per hour
 Per unit cost of direct labor
35000 30000 3000
10 5 10
2 3 2
5 5 5
10 15 10
Overhead costs
1. Cost of receiving orders 30000
15000
120000
65000
230000
2. Cost of dispatched orders
3. Set up cost
4. Machining costs
Total overhead cost
A) Calculating cost and profit per unit by labor hours.
Details Lip balm Lip stick Lip gloss
Manufactured Units 35000 30000 3000
DL hours/ per unit 2 3 2
DL hours of labour per product 70000 90000 6000
Total hours of labour 166000
Absorption rate of overheads through labour hr
= total overheads / total direct labour hours
=230000 / 166000
=1.39
1.39x2 =
2.78
1.39x 3 =
4.17
1.39x 2 =
2.78
Per unit cost
DM cost / unit 10 5 10