Mosher Manufacturing Company, Term Paper Example

I have pleasure in submitting the analysis and interpretation of the 2011 Production Summary information for Mosher Manufacturing Co.  The figures provide comparative analysis between that of the 2010 / 2011 Production data and a breakdown of the 2011 Operating expenses by quarter.

The data has been modelled within an Excel Spreadsheet in order to provide a number of different graphical illustrations of the data.  This provides a number of different views including that of line charts, bar charts and pie charts.  These are briefly interpreted below:

Fig 1 :  Shows a steady increase in production trend during all of the four quarters in 2011. This compared to 2010 where we witnessed a drop off in production in the third quarter.  2010 was a little more erratic compared to the steady growth pattern in the 2011 figures.  Despite that 2010 slightly exceeded production of 2011 showing 66991 units in 2010 compared to 6518 in 2011.

Fig 2 :  Illustrates the 2011 Operating Expenses broken down by Materials, Labor and Overhead cost ($) for each quarter in the year. Materials remained relatively constant with an increase in the 4^th quarter. There was a gradual increase in labor costs throughout the year but overheads reduced each quarter.

Fig 3 : Better illustrates the trend of the expenses. Each of the categories illustrates an increase in the 4^th quarter.

Recommendations

Based upon the analysis of these results we seem to be on the right track in so far as production is concerned.  We need to retain the growth trend in 2012 quarterly results.  We need to watch the trend of increased expenditure in material and labour costs, whilst encouraging the reduction of overhead costs.  In this regard greater emphasis to be placed on the monitoring of material costs as opposed to Labor which may be considered as a semi-fixed cost to the business.