An Analysis of the Factors Generating the Variance Between the Budgeted and Actual Operating Results of the Naval Aviation Depot at North Island, California
MBA professional rept.
NAVAL POSTGRADUATE SCHOOL MONTEREY CA
Pagination or Media Count:
For six of the past eight years, naval aviation depot-level maintenances activities have encountered operating losses that were not anticipated in the Navy Working Capital Fund NWCF budgets. These unanticipated losses resulted in increases or surcharges to the stabilized rates as an offset. This project conducts a variance analysis to uncover possible causes of the unanticipated losses. The variance analysis between budgeted projected and actual financial results was performed on financial data collected on the E-2C aircraft program from Fleet Readiness Center Southwest FRCSW located in San Diego, California. The results of the variance analysis are interpreted and discussed in terms of labor sales quantity, mix, and rate variances, material sales variance, material expense variance, labor, production overhead, and general and administrative ratespending and quantity variances. The results of this project reveal the factors that created the greatest variance in FRCSWs net operating results. The variance analysis suggests that the factors having the greatest affect on the operating results were the material sales variances, material expense variances, and the variances due to the quantity of work. Additionally, the analysis revealed that during the year analyzed FY 2007 FRCSW was not reimbursed for 21 percent of its material costs.
- Economics and Cost Analysis
- Statistics and Probability