Becoming more efficient

Job costs

$800,000.00

Overhead

$120,000.00

Profit

$46,000.00

Volume

$966,000.00

• Actual costs beat estimated costs by 10%.

 

Estimated

Actual

Job costs

$800,000.00

$720,000.00

Overhead

120,000.00

120,000.00

Profit

46,000.00

126,000.00

Volume

$966,000.00

$966,000.00

 

• Profit has increased by $80,000.00.

• Profit went from 5% to 13% of volume.