Cost Management Article by jiq84077

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									The following worksheets are meant to be used with the publication
"A Simple Profit Planning and Cost Management System for Small Sawmills"
written by Robert Pajala. The worksheets are adaptations of the Forms presented in the publication.

In each worksheet, yellow colored cells require data inputs from the user. Green cells
perform calculations based on the data that has been entered. Some Forms will require the
user to re-enter the results of calculations performed in previous Forms. These values do not transfer
automatically between Forms, as certain Forms (1,2,3,4) will have to be copied and used multiple times
depending on the number of species being utilized.

Form 2 requires the user to develop their own calculations for selling costs. Refer
to the publication for guidelines on developing these calculations
                                           FORM 1

                                 Revenue Calculation Form

                      Date:                               Mill:
                                                    Production
                   Species:                            Period:

                                 Amount          Selling Price
         Product              Produced (MBf)       ($/MBf)                  Total Value
                                                                  $                           -
                                                                  $                           -
                                                                  $                           -
                                                                  $                           -
                                                                  $                           -
                                                                  $                           -
                                                                  $                           -
                                                                  $                           -
                                                                  $                           -
                                                                  $                           -
                                                                  $                           -
                                                                  $                           -
                                                                  $                           -
                                                                  $                           -
                                                                  $                           -
                                                                  $                           -
                                                                  $                           -
                                                Total Sales
Total MBF:                                    0 Value:            $                           -
                        (total sales value) =       #DIV/0!       $ / MBF
                        (total MBF Produced)



INSTRUCTIONS:
 1. List all of the products produced from a single species for a given period (day, month, year,
 etc.).
 2. List the volume of each product produced for the period.
 3. List the selling price for each product.
 4. Calculate total sales value for each product. Add total value column.
 5. Divide total sales value for all products by total MBF produced.
                                               FORM 2

                                     Selling Cost Calculation Form

                             Date:                                                              Mill:
                          Species:                                                Production Period:
         COST CATEGORY                          CALCULATION                                      COST/MBF
Grading:




Broker Fees:




Discounts:




Delivery Costs:




Other:




                                                                         Total Selling Cost Per MBF $       -

           Instructions
Breakdown each Cost Category into its basic elements.
Calculate costs for each element on a MBf basis , using standard Excel-based calculations.
Enter the total cost for each Cost Category in the Total Column.
Total Selling Costs are calculated automatically.
                                            FORM 3

                                   Log Cost Calculation Form

          Date:                                                Mill:

      Species:                                    Production Period:


Determine A, B or C and D for the Period.



                          A. MBF logs sawed:



                      B. Cost of logs/MBF log
                                       scale:


                  C. Total Cost of logs for the
                                       Period:


                  D. MBF lumber produced for
                                  the period:



              Calculated Cost of Logs per MBF of lumber, determined as follows:
                           (A)(B)                         #DIV/0! $ / MBf
                            (D)

                                            OR
                             (C)                             #DIV/0! $ / MBf
                             (D)
                                                     FORM 4

                                      Direct Labor Cost Calculation Form

               Date:                                          Mill:
                                                       Production
         Species:                                          Period:
                                                     Number of pay
  MBF produced in                                     hours in this
      this period:                                         period:


                                                             PER HOUR
                                                     Unemployment Workman's         Other
    Position               Wage           FICA         Insurance   Comp. Ins.       Fringe           Total
                                                                                                 $           -
                                                                                                 $           -
                                                                                                 $           -
                                                                                                 $           -
                                                                                                 $           -
                                                                                                 $           -
                                                                                                 $           -
                                                                                                 $           -
                                                                                                 $           -
                                                                                                 $           -
                                                                                                 $           -
                                                                                                 $           -
                                                                                                 $           -
                                                                                                 $           -
TOTAL                  $          -   $          -   $          -     $    -    $            -   $           -

         (labor cost / hr:$ ) x (paid hrs / period)                   =               #DIV/0! $ / MBF
          (MBF lumber produced during period)
                                                 FORM 5

                            Standard Variable Overhead Cost Calculation Form

                          Average Daily Production (MBf)



                     COST CATEGORY                                      AVERAGE DAILY COSTS

Repairs:




Mill Supplies:




Fuel:




Electricity:




Other:




                                            $ Total / Day   $                                             -

                (Variable overhead / day ) =                                            #DIV/0! $ / MBf
               (Average MBF produced per day)
                              FORM 6

             Annual Fixed Cost Calculation Form

                     Date:                                 Mill:
  Year for which costs are
         being calculated:
                      COST CATEGORY                           TOTAL ANNUAL COST
Insurance:




Licenses:




Leases:




Professional fees
             - Accounting:
                  - Legal:
                  - Other :
                  Interest:



Fixed Salaries:




Office:



Other:




                                                  Total:           $          -
                                                             FORM 7

                                    Annual Production and Profit Planning Worksheet



                  Plan for the period of:                                                          Date:

SPECIES SAWED                                                                                                  Total

1. MBF lumber
sawed during
planning period                                                                                                            0
2. Standard
revenue/MBF                                                                                                $           -

3. Less: Standard
selling cost/MBF                                                                                           $           -


4. Net revenue/MBF $                      -    $                 -   $         -    $                 -    $           -

5. Less: Standard
log cost/MBF                                                                                               $           -
: Standard direct
labor cost/MBF                                                                                             $           -

: Standard variable
overhead/MBF                                                                                               $           -
6. Total variable
cost/MBF            $                     -    $                 -   $         -    $                 -    $           -

7. Contribution
margin/MBF               $                -    $                 -   $         -    $                 -    $           -
8. Total
contribution
margin/year              $                -    $                 -   $         -    $                 -    $           -

9. Total fixed costs for the planning period:
10. Profit before taxes:                                                                                   $           -

11. Estimated income taxes:

12. Net profit:                                                                                            $           -



INSTRUCTIONS: For each species you plan to saw during the planning period:

  1. Enter volume of lumber production planned in MBF.
  2. Enter standard revenue per MBF for each species.
  3. Enter standard selling cost per MBF for each species.
  4. Subtract line 3 from line 2.
  5. Enter standard log cost/MBF (Form 3), standard direct labor cost/MBF (Form 4), standard variable overhead
  cost/MBF (Form 5).
  6. The sums of log, labor and variable overhead costs from line 5.
  7. Subtract line 6 from line 4.
  8. Multiply line 7 times line 1. Put total in line at far right.
  9. Enter total fixed costs for the planning period (Form 6). This would be annual fixed costs if the planning period is
  one year.
10. Subtract line 9 from line 8.
11. Enter estimated income taxes for the planning period based on the profit before taxes shown in line 10.
12. Subtract line 11 from line 10. This is the estimated net profit for the planning period.
                                      FORM 8

                             Daily Cost Record Form

Date:                                       Mill:
                                            Production
Species:                                    Period:
                                                $ per MBF
                            Standard               Actual              Variance
Average
Revenue/MBF                                                        $                 -

Less: Selling
Cost/MBF                                                           $                 -


Net Revenue/MBF                                                    $                 -
Less: Log
Cost/MBF                                                           $                 -

Labor Cost/MBF                                                     $                 -
Variable
Overhead/MBF                                                       $                 -
Total Variable
Cost/MBF.                                                          $                 -
Contribution
Margin/MBF.                                                        $                 -




INSTRUCTIONS:

  1. Enter the standard revenue and costs for the species from the ANNUAL
  PRODUCTION PLAN.
  2. Enter the actual revenue and costs for the species for production during this
  period.

  3. Calculate variances (difference between actual and standard).
                              FORM 9

                   Monthly Cash Budget Projection

                                   January   February       March           April           May           June           July
1. Beginning Cash Balance

2. Collections from Sales
3. Other Income:




4. Total Cash Available        $         -   $      -   $           -   $           -   $         -   $          -   $          -
5. Cash Disbursements:
     Log Purchases
     Payroll
     Manager's Salary
     Parts & Supplies
     Fuel
     Utilities
     Grading Fees
Other:




6. Total Cash Disbursements    $         -   $      -   $           -   $           -   $         -   $          -   $          -

7. Ending Cash Balance         $         -   $      -   $           -   $           -   $         -   $          -   $          -
    August   September       October   November   December




$        -   $       -   $         -   $     -    $     -




$        -   $       -   $         -   $     -    $     -

$        -   $       -   $         -   $     -    $     -

								
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