Document rBg6pXOZ0w23LkorpEvOzDeaa

CYANAMiD American Cyanamid Company PLASTIC &_ ADDITIVESDepartment REPORT ON PRODUCTION AND COST CHICAGO PLANT CHICAGO, ILLINOIS NA-55 BEV '2-77 2-77 MAY DATE _____________ 1982 Memorandum To: Mr. H. C. Gaffney Location: Chicago Plant From: b . G. Witherspoon Location: Charlotte Extension: 280 Subject: DIRECT COST VARIATION Date: June 14, 1982 Reference: y Copy to: : Mr. a . C. Bell ' " Dr. R. B. Toothill Mr. C. R. Wherley NA NA NA During the month of May 1982, the Chicago Plant generated a favorable variation of $65,440 as shown below: May 1982 Favorable (Unfavorable) Cumulative Favorable (Unfavorable) Manufacturing Variance Litharge Stabilizers Plant General Expense c. Control Laboratory Plant Protection Steam Sub Total ( 2.0) 6.8 1.3 ( -4) ( .6) .7 5.8 ( 6.9) ( 16.4) 15.8 ( .1) ( 6.2) ( 8.5) ( 22.3) Material Price Variance 59.6 248.7 Grand Total 65.4 226.4 t The major components contributing to the current month and cumulative manufacturing Variances are listed below: ^ Favorable (Unfavorable Service Variable Material & Containers Overhead Sub Total Litharge - (5.8) (5.8) Stabilizers 3.3 3.4 6.7 Dept. Total 3.3 ( 2.4) .9 Price Labor 1.5 .1 -, v . i.6 Y-T-D Total (13.1) (28.0) (41.1) 1.6 Prime Period Cost 2.3 - 1.0 3.3 17.2 Total Controllable Cost (2.0) 6.8 1.0 5.8 (22.3) N14478.01 CYWI 25-000694S 2 An analysis of the current month's manufacturing variance is tabulated below: 1. Manufacturing Variance Variable Materials Barium Stearate Substitution for normal Lead Stearate Bulk Lead Carbonate Bulk Lead Carbonate usage submitted in April for Cyastab 40 Oiled, new cost sheet and production entered in May resulting in a favorable variation of ( 1-5) 4.3 Other Variable Usage .5 3.3 Variable Overhead Electricity Low production volume has cuased an unfavorable variation in Electricity usage ( 1-5) Direct Labor Effective usage of direct labor and usage of foreman because of slow sales requirements Water During slow manufacturing requirements water system not effectively secured Control Lab Lower than budgeted sales requirements has caused an unfavorable variation O Other Variable Overhead 1.2 ( 1-3) ( 1-1) .3 ( 2.4) Price Labor Lower than budgeted Overtime 1.6 Prime Period Overhead Depreciation Actual depreciation lower than budget 1.5 Other Manufacturing Period Cost .8 2.3 Service Departments Plant Protection Overcharge of salaries to Plant Protection will be reversed in June Other variation ( 1.3) .7 ( .6) Plant General Expense Salaries lower than budget 1.6 Other expenditures ( .3) 1.3 CYWI 25-0006949 3 Control Lab Lab supplies higher than budget Steam Natural gas charges slightly lower than budget Total Controllable Cost. Material Price Variance Significant items are listed below: ( .1 5.8 Pig Lead Purchase price for lead $.1900/lb. lower than standard Phthalic Anhydride Average purchase price $.1246/lb. lower than standard Other Price Variance Total Variation for May 1982 56.2 3.1 .3 59.6 $65.4 Net variation of $65.4 was allocated to the Plastic Additives Department. BGW/kf B. G. 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