Here are the calculations and responses:
(a) Cost per unit using traditional absorption costing:
Product D C P
Direct materials $12 $10 $8
Direct labour (2 hrs @ $6) $12 $14 $16
Overhead absorption (2 hrs @ $28) $56 $56 $56
Total cost $80 $80 $80
Units produced per period 1,000 1,500 2,000
(b) Cost per unit using activity based costing:
Activities:
Design: $30,000
Assembly: $60,000
Finishing: $40,000
Inspection: $20,000
Packaging: $10
1. The document provides information on the costs, revenues, and production capacities for ABC Ltd., which manufactures three toy furniture products. It includes the budgeted unit costs, resource requirements, volumes, selling prices, and other relevant financial details for chairs, benches, and tables.
2. ABC Ltd. has received an order it must fulfill for 500 chairs, 100 benches, and 150 tables. However, the available supply of specialized timber needed for production is limited to 20,000 square meters annually.
3. The document poses requirements to determine the optimal production plan to maximize profit while meeting orders, and to calculate the maximum timber prices that would justify obtaining extra supplies.
The document contains information about costs and revenues for multiple products/orders. It includes questions about determining profitability given constraints on materials, production capacity, sales quantity or value. It also includes questions about determining optimal product mix, budgeted profitability, determining selling prices, and whether special orders should be accepted. Cost information like materials, labor, overheads, fixed and variable costs are provided for analysis using techniques like marginal costing.
The document contains 12 questions related to marginal costing, break-even analysis, product mix, and other cost accounting concepts. The questions provide financial information like sales, costs, profits, prices, and capacity utilization for multiple products. They ask the reader to calculate break-even points, recommend product mixes, advise on whether to continue or discontinue a product line, and determine if a proposed change would be profitable.
For more course tutorials visit
www.acct505.com
ACCT 505 Week 1-7 All Discussion Questions
ACCT 505 Week 1 Case Study
ACCT 505 Week 2 Quiz Job Order and Process Costing Systems
ACCT 505 Week 2 Quiz Set 2
This document provides information and questions for the ACCT 505 Entire Course. It includes tutorials, discussion questions, exams, quizzes, case studies and course projects covering topics like job order and process costing systems, measuring performance, segment reporting, relevant costs, capital budgeting, and absorption costing. The document also provides 3 sets of final exam questions testing understanding of topics like cost of goods manufactured, break-even analysis, flexible budgeting, and make-or-buy analysis.
This document contains information and questions for the ACCT 505 Entire Course. It includes discussion questions, exams, quizzes, case studies and course projects for each week of the course. It also provides 3 sets of final exam questions, sample exams, and tutorials for external review.
For more classes visit
www.snaptutorial.com
ACCT 505 Week 1-7 All Discussion Questions
ACCT 505 Week 1 Case Study
ACCT 505 Week 2 Quiz Job Order and Process Costing Systems
The document contains several questions related to costing and profitability analysis for companies. Question 1 involves analyzing the impact of a 20% price reduction and 30% sales increase. Question 2 calculates P/V ratio, sales to earn Rs. 5 lakhs profit, and profit at Rs. 10 lakhs sales. Question 3 determines the lowest export price using marginal costing principles.
1. The document provides information on the costs, revenues, and production capacities for ABC Ltd., which manufactures three toy furniture products. It includes the budgeted unit costs, resource requirements, volumes, selling prices, and other relevant financial details for chairs, benches, and tables.
2. ABC Ltd. has received an order it must fulfill for 500 chairs, 100 benches, and 150 tables. However, the available supply of specialized timber needed for production is limited to 20,000 square meters annually.
3. The document poses requirements to determine the optimal production plan to maximize profit while meeting orders, and to calculate the maximum timber prices that would justify obtaining extra supplies.
The document contains information about costs and revenues for multiple products/orders. It includes questions about determining profitability given constraints on materials, production capacity, sales quantity or value. It also includes questions about determining optimal product mix, budgeted profitability, determining selling prices, and whether special orders should be accepted. Cost information like materials, labor, overheads, fixed and variable costs are provided for analysis using techniques like marginal costing.
The document contains 12 questions related to marginal costing, break-even analysis, product mix, and other cost accounting concepts. The questions provide financial information like sales, costs, profits, prices, and capacity utilization for multiple products. They ask the reader to calculate break-even points, recommend product mixes, advise on whether to continue or discontinue a product line, and determine if a proposed change would be profitable.
For more course tutorials visit
www.acct505.com
ACCT 505 Week 1-7 All Discussion Questions
ACCT 505 Week 1 Case Study
ACCT 505 Week 2 Quiz Job Order and Process Costing Systems
ACCT 505 Week 2 Quiz Set 2
This document provides information and questions for the ACCT 505 Entire Course. It includes tutorials, discussion questions, exams, quizzes, case studies and course projects covering topics like job order and process costing systems, measuring performance, segment reporting, relevant costs, capital budgeting, and absorption costing. The document also provides 3 sets of final exam questions testing understanding of topics like cost of goods manufactured, break-even analysis, flexible budgeting, and make-or-buy analysis.
This document contains information and questions for the ACCT 505 Entire Course. It includes discussion questions, exams, quizzes, case studies and course projects for each week of the course. It also provides 3 sets of final exam questions, sample exams, and tutorials for external review.
For more classes visit
www.snaptutorial.com
ACCT 505 Week 1-7 All Discussion Questions
ACCT 505 Week 1 Case Study
ACCT 505 Week 2 Quiz Job Order and Process Costing Systems
The document contains several questions related to costing and profitability analysis for companies. Question 1 involves analyzing the impact of a 20% price reduction and 30% sales increase. Question 2 calculates P/V ratio, sales to earn Rs. 5 lakhs profit, and profit at Rs. 10 lakhs sales. Question 3 determines the lowest export price using marginal costing principles.
For more classes visit
www.snaptutorial.com
ACCT 505 Week 1-7 All Discussion Questions
ACCT 505 Week 1 Case Study
ACCT 505 Week 2 Quiz Job Order and Process Costing Systems
ACCT 505 Week 2 Quiz Set 2
ACCT 505 Week 3 Case Study II
ACCT 505 Week 4 Midterm Exam
ACCT 505 Week 1-7 All Discussion Questions
ACCT 505 Week 1 Case Study
ACCT 505 Week 2 Quiz Job Order and Process Costing Systems
ACCT 505 Week 2 Quiz Set 2
FOR MORE CLASSES VISIT
www.acct505outlet.com
ACCT 505 Week 1-7 All Discussion Questions
ACCT 505 Week 1 Case Study
ACCT 505 Week 2 Quiz Job Order and Process Costing Systems
ACCT 505 Week 2 Quiz Set 2
ACCT 505 Week 3 Case Study II
ACCT 505 Week 4 Midterm Exam
ACCT 505 Week 5 Course Project 1 LBJ Company (New)
For more course tutorials visit
www.acct505.com
ACCT 505 Week 1-7 All Discussion Questions
ACCT 505 Week 1 Case Study
ACCT 505 Week 2 Quiz Job Order and Process Costing Systems
ACCT 505 Week 2 Quiz Set 2
For more course tutorials visit
www.acct505.com
ACCT 505 Week 1-7 All Discussion Questions
ACCT 505 Week 1 Case Study
ACCT 505 Week 2 Quiz Job Order and Process Costing Systems
ACCT 505 Week 2 Quiz Set 2
This document contains materials for the ACCT 505 entire course, including weekly discussion questions, case studies, quizzes, exams, and course projects. It also includes three sets of the final exam for the course.
This document contains materials for the ACCT 505 entire course, including weekly discussion questions, case studies, quizzes, exams, and course projects. It also includes three sets of the final exam for the course.
Week 5 – Term 5 Homework60 PointsDue June 10, 20121.(6 poi.docxmelbruce90096
Week 5 – Term 5 Homework
60 Points
Due June 10, 2012
1.(6 points)
At the beginning of 2010, Zuir Company's accounting department calculated the following estimates for the coming year's production:
Estimated overhead
$441,600
Direct labor hours
9,200 hr
During the year, Zuir Company experienced $440,000 in actual overhead costs and actually worked 9,100 direct labor hours. Zuir applies overhead to production using a predetermined overhead rate based on direct labor hours.
a. Calculate the predetermined overhead rate Zuir uses to apply overhead. (Show your computations.)
b. By what amount was overhead over- or underapplied for 2010? (Show your computations.)
c. Assuming the amount of over- or underapplied overhead is not significant, will the Cost of Goods Sold account be increased or decreased to correct the application of overhead?
2.(10 points)
Yamishi Production had the following inventories for the first quarter of 20xx:
Beginning
Ending
Materials
$606,600
$522,100
Work in process
312,100
280,800
Finished goods
416,100
540,200
Purchases of materials during the quarter were $427,800. Total direct labor costs were incurred in the amount of $1,482,000. Actual overhead costs were incurred as follows: operating supplies used, $17,100; janitorial and maintenance, $87,300; employee benefits, $26,400; utilities, $162,000; depreciation of factory, $43,200; property taxes, $24,000; factory insurance, $29,000. Net sales for the quarter were $3,562,200. Selling and administrative expenses were $508,000. Income taxes should be computed at 40 percent.
Prepare a statement of cost of goods manufactured for the first quarter of 20xx.
3.(6 points)
The following information has been made available to you. Assume that overhead is applied on the basis of direct labor hours.
Estimated overhead
$1,638,000
Estimated direct labor hours
390,000
Actual direct labor hours
442,000
Actual overhead
$1,862,000
a. Compute the predetermined overhead rate.
b. Compute the amount of applied overhead for the year.
c. Compute the amount of underapplied or overapplied overhead.
4.(6 points)
Job 29 consists of 300 units and has total manufacturing costs of direct materials, $4,500; direct labor, $7,500; and overhead, $3,600.
a. What is the unit product cost?
b. What are the prime costs per unit?
c. What are the conversion costs per unit?
5.(10 points)
Cancun Company uses a FIFO process costing system.
Cancun Company
Equivalent Production
November
Physical Units
Beginning inventory
2,350
Equivalent Units
Units started this period
10,120
Direct Materials
%
Conversion Costs
%
Units to be accounted for
12,470
Beginning inventory
2,350
Units started and completed
9,120
Ending inventory
1,000
Units accounted for
12,470
The following costs relate to work in process during November:
Beginning inventory
Direct materials
$7,200
Direct labor
380
Overhead
630
Current month's costs
Direct materials
$51,612
Direct labor
21,562.
This document provides information and materials for an ACCT 505 accounting course, including discussion questions, exams, quizzes, case studies and course projects for each week of the course. It also includes three sets of practice questions for the final exam.
ACCT 505 HELP Education for Service--acct505help.comabhila171
This document contains information for an ACCT 505 entire course, including weekly discussion questions, case studies, quizzes, exams, and course projects. It also includes three sets of practice questions for the ACCT 505 final exam, covering topics such as cost accounting, budgeting, decision making, and investment analysis. Sample questions calculate break-even points, prepare income statements using different costing methods, perform make-or-buy analyses, and calculate financial metrics like ROI and NPV. The document provides materials to help study for the ACCT 505 final exam.
ACCT 505 OUTLET Education for Service--acct505outlet.comkopiko58
FOR MORE CLASSES VISIT
www.acct505outlet.com
ACCT 505 Week 1-7 All Discussion Questions
ACCT 505 Week 1 Case Study
ACCT 505 Week 2 Quiz Job Order and Process Costing Systems
ACCT 505 Week 2 Quiz Set 2
ACCT 505 OUTLET Become Exceptional--acct505outlet.comkopiko122
This document provides materials for the ACCT 505 course, including discussion questions, exams, quizzes, case studies and projects for each week of the course. It also includes three sets of practice final exams for the ACCT 505 course at Devry University. The materials are intended to help students prepare for and complete all assessments for the ACCT 505 course from week 1 through the final exam.
The document contains a practice exam for an accounting course with multiple choice and essay questions covering various topics such as cost accounting, budgeting, and investment analysis. Specifically:
- The exam contains 3 sets of questions, with each set containing between 5-7 questions. Questions assess topics like cost-volume-profit analysis, process costing, absorption vs variable costing, budgeting, and make-or-buy decisions.
- Sample questions calculate break-even points, predetermined overhead rates, income statements, cash budgets, and net present value of investment opportunities.
- Answers are provided for some questions, including calculations and brief explanations of results. Other questions only list the requirements and provide no solutions.
Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
For more classes visit
www.snaptutorial.com
ACCT 505 Week 1-7 All Discussion Questions
ACCT 505 Week 1 Case Study
ACCT 505 Week 2 Quiz Job Order and Process Costing Systems
ACCT 505 Week 2 Quiz Set 2
ACCT 505 Week 3 Case Study II
ACCT 505 Week 4 Midterm Exam
ACCT 505 Week 1-7 All Discussion Questions
ACCT 505 Week 1 Case Study
ACCT 505 Week 2 Quiz Job Order and Process Costing Systems
ACCT 505 Week 2 Quiz Set 2
FOR MORE CLASSES VISIT
www.acct505outlet.com
ACCT 505 Week 1-7 All Discussion Questions
ACCT 505 Week 1 Case Study
ACCT 505 Week 2 Quiz Job Order and Process Costing Systems
ACCT 505 Week 2 Quiz Set 2
ACCT 505 Week 3 Case Study II
ACCT 505 Week 4 Midterm Exam
ACCT 505 Week 5 Course Project 1 LBJ Company (New)
For more course tutorials visit
www.acct505.com
ACCT 505 Week 1-7 All Discussion Questions
ACCT 505 Week 1 Case Study
ACCT 505 Week 2 Quiz Job Order and Process Costing Systems
ACCT 505 Week 2 Quiz Set 2
For more course tutorials visit
www.acct505.com
ACCT 505 Week 1-7 All Discussion Questions
ACCT 505 Week 1 Case Study
ACCT 505 Week 2 Quiz Job Order and Process Costing Systems
ACCT 505 Week 2 Quiz Set 2
This document contains materials for the ACCT 505 entire course, including weekly discussion questions, case studies, quizzes, exams, and course projects. It also includes three sets of the final exam for the course.
This document contains materials for the ACCT 505 entire course, including weekly discussion questions, case studies, quizzes, exams, and course projects. It also includes three sets of the final exam for the course.
Week 5 – Term 5 Homework60 PointsDue June 10, 20121.(6 poi.docxmelbruce90096
Week 5 – Term 5 Homework
60 Points
Due June 10, 2012
1.(6 points)
At the beginning of 2010, Zuir Company's accounting department calculated the following estimates for the coming year's production:
Estimated overhead
$441,600
Direct labor hours
9,200 hr
During the year, Zuir Company experienced $440,000 in actual overhead costs and actually worked 9,100 direct labor hours. Zuir applies overhead to production using a predetermined overhead rate based on direct labor hours.
a. Calculate the predetermined overhead rate Zuir uses to apply overhead. (Show your computations.)
b. By what amount was overhead over- or underapplied for 2010? (Show your computations.)
c. Assuming the amount of over- or underapplied overhead is not significant, will the Cost of Goods Sold account be increased or decreased to correct the application of overhead?
2.(10 points)
Yamishi Production had the following inventories for the first quarter of 20xx:
Beginning
Ending
Materials
$606,600
$522,100
Work in process
312,100
280,800
Finished goods
416,100
540,200
Purchases of materials during the quarter were $427,800. Total direct labor costs were incurred in the amount of $1,482,000. Actual overhead costs were incurred as follows: operating supplies used, $17,100; janitorial and maintenance, $87,300; employee benefits, $26,400; utilities, $162,000; depreciation of factory, $43,200; property taxes, $24,000; factory insurance, $29,000. Net sales for the quarter were $3,562,200. Selling and administrative expenses were $508,000. Income taxes should be computed at 40 percent.
Prepare a statement of cost of goods manufactured for the first quarter of 20xx.
3.(6 points)
The following information has been made available to you. Assume that overhead is applied on the basis of direct labor hours.
Estimated overhead
$1,638,000
Estimated direct labor hours
390,000
Actual direct labor hours
442,000
Actual overhead
$1,862,000
a. Compute the predetermined overhead rate.
b. Compute the amount of applied overhead for the year.
c. Compute the amount of underapplied or overapplied overhead.
4.(6 points)
Job 29 consists of 300 units and has total manufacturing costs of direct materials, $4,500; direct labor, $7,500; and overhead, $3,600.
a. What is the unit product cost?
b. What are the prime costs per unit?
c. What are the conversion costs per unit?
5.(10 points)
Cancun Company uses a FIFO process costing system.
Cancun Company
Equivalent Production
November
Physical Units
Beginning inventory
2,350
Equivalent Units
Units started this period
10,120
Direct Materials
%
Conversion Costs
%
Units to be accounted for
12,470
Beginning inventory
2,350
Units started and completed
9,120
Ending inventory
1,000
Units accounted for
12,470
The following costs relate to work in process during November:
Beginning inventory
Direct materials
$7,200
Direct labor
380
Overhead
630
Current month's costs
Direct materials
$51,612
Direct labor
21,562.
This document provides information and materials for an ACCT 505 accounting course, including discussion questions, exams, quizzes, case studies and course projects for each week of the course. It also includes three sets of practice questions for the final exam.
ACCT 505 HELP Education for Service--acct505help.comabhila171
This document contains information for an ACCT 505 entire course, including weekly discussion questions, case studies, quizzes, exams, and course projects. It also includes three sets of practice questions for the ACCT 505 final exam, covering topics such as cost accounting, budgeting, decision making, and investment analysis. Sample questions calculate break-even points, prepare income statements using different costing methods, perform make-or-buy analyses, and calculate financial metrics like ROI and NPV. The document provides materials to help study for the ACCT 505 final exam.
ACCT 505 OUTLET Education for Service--acct505outlet.comkopiko58
FOR MORE CLASSES VISIT
www.acct505outlet.com
ACCT 505 Week 1-7 All Discussion Questions
ACCT 505 Week 1 Case Study
ACCT 505 Week 2 Quiz Job Order and Process Costing Systems
ACCT 505 Week 2 Quiz Set 2
ACCT 505 OUTLET Become Exceptional--acct505outlet.comkopiko122
This document provides materials for the ACCT 505 course, including discussion questions, exams, quizzes, case studies and projects for each week of the course. It also includes three sets of practice final exams for the ACCT 505 course at Devry University. The materials are intended to help students prepare for and complete all assessments for the ACCT 505 course from week 1 through the final exam.
The document contains a practice exam for an accounting course with multiple choice and essay questions covering various topics such as cost accounting, budgeting, and investment analysis. Specifically:
- The exam contains 3 sets of questions, with each set containing between 5-7 questions. Questions assess topics like cost-volume-profit analysis, process costing, absorption vs variable costing, budgeting, and make-or-buy decisions.
- Sample questions calculate break-even points, predetermined overhead rates, income statements, cash budgets, and net present value of investment opportunities.
- Answers are provided for some questions, including calculations and brief explanations of results. Other questions only list the requirements and provide no solutions.
Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
SATTA MATKA SATTA FAST RESULT KALYAN TOP MATKA RESULT KALYAN SATTA MATKA FAST RESULT MILAN RATAN RAJDHANI MAIN BAZAR MATKA FAST TIPS RESULT MATKA CHART JODI CHART PANEL CHART FREE FIX GAME SATTAMATKA ! MATKA MOBI SATTA 143 spboss.in TOP NO1 RESULT FULL RATE MATKA ONLINE GAME PLAY BY APP SPBOSS
In the Adani-Hindenburg case, what is SEBI investigating.pptxAdani case
Adani SEBI investigation revealed that the latter had sought information from five foreign jurisdictions concerning the holdings of the firm’s foreign portfolio investors (FPIs) in relation to the alleged violations of the MPS Regulations. Nevertheless, the economic interest of the twelve FPIs based in tax haven jurisdictions still needs to be determined. The Adani Group firms classed these FPIs as public shareholders. According to Hindenburg, FPIs were used to get around regulatory standards.
Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
In this webinar, we won't focus on the research methods for discovering user-needs. We will focus on synthesis of the needs we discover, communication and alignment tools, and how we operationalize addressing those needs.
Industry expert Scott Sehlhorst will:
• Introduce a taxonomy for user goals with real world examples
• Present the Onion Diagram, a tool for contextualizing task-level goals
• Illustrate how customer journey maps capture activity-level and task-level goals
• Demonstrate the best approach to selection and prioritization of user-goals to address
• Highlight the crucial benchmarks, observable changes, in ensuring fulfillment of customer needs
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
IMPACT Silver is a pure silver zinc producer with over $260 million in revenue since 2008 and a large 100% owned 210km Mexico land package - 2024 catalysts includes new 14% grade zinc Plomosas mine and 20,000m of fully funded exploration drilling.
B2B payments are rapidly changing. Find out the 5 key questions you need to be asking yourself to be sure you are mastering B2B payments today. Learn more at www.BlueSnap.com.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.AnnySerafinaLove
This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.
FIA officials brutally tortured innocent and snatched 200 Bitcoins of worth 4...jamalseoexpert1978
Farman Ayaz Khattak and Ehtesham Matloob are government officials in CTW Counter terrorism wing Islamabad, in Federal Investigation Agency FIA Headquarters. CTW and FIA kidnapped crypto currency owner from Islamabad and snatched 200 Bitcoins those worth of 4 billion rupees in Pakistan currency. There is not Cryptocurrency Regulations in Pakistan & CTW is official dacoit and stealing digital assets from the innocent crypto holders and making fake cases of terrorism to keep them silent.
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
3 Simple Steps To Buy Verified Payoneer Account In 2024SEOSMMEARTH
Buy Verified Payoneer Account: Quick and Secure Way to Receive Payments
Buy Verified Payoneer Account With 100% secure documents, [ USA, UK, CA ]. Are you looking for a reliable and safe way to receive payments online? Then you need buy verified Payoneer account ! Payoneer is a global payment platform that allows businesses and individuals to send and receive money in over 200 countries.
If You Want To More Information just Contact Now:
Skype: SEOSMMEARTH
Telegram: @seosmmearth
Gmail: seosmmearth@gmail.com
At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
1. Beta Limited is budgeting its performance for the next year. For the budgeting exercise. They are looking at their competitors whose
advertising expenditure and market presence have a strong influence on the sales performance that Beta can achieve. The company has
also tried to analyse the probabilities of the various levels of the advertisement spending by its competitors and the corresponding level
of sales that its products can achieve.
Advertisement pending
by competitors
probability Product A Product B Product C
High 0.5 6,000 units 8,000 units 5,500 units
Medium 0.3 7,500 units 9,000 units 6,000 units
Low 0.2 10,000 units 12,000 units 8,000 units
Products A, B and C belong to the same market segment. The unit prices of these products are Rs. 4,500. Rs.6,000 and Rs.7,500
respectively.
After internal discussions. it was agreed that the budget should reflect all the three possibilities and therefore some kind of a
weighted average should be taken of various expectations. The senior management team felt that irrespective of the pressure
created by competitors. The company should look at certain additional targets and meet them by implementing whatever
strategies that may be needed for the purpose. The additional targets were as follows:
Aggregate sales turnover of RS.15 crores which would mean a healthy growth of 20 percent over last year. It was also decided that
while by and large the quantity target would be in accordance with the weighted average quantities based on above, the company
should also sell a certain minimum quantity of its products to maintain a reasonable market presence. Those quantities were:
Product A 8,000 units
Product B 9,000 units
Product C 7,000 units
2. The cost structure and other data relating to these products is as follows:
Product A Product B Product C
Material cost Rs.2,000 Rs.3,000 Rs.3,500
Other variable costs Rs.1,000 Rs.1,200 Rs.1,500
Hours utilized 50 Hours 60 Hours 70 Hours
the dealer commission per unit: Normal Rs.450 Rs.600 Rs.750
For quantities beyond the minimum
quantities mentioned above
Rs.600 Rs.800 Rs.1,000
The fixed overheads expenditure is Rs.2,00,00,000.
It is also envisaged that for meeting the sales target, a higher advertisement expenditure would be required than already included
in the fixed overheads. The additional advertisement expenditure irrespective of the quantity of additional sale over the minimum
quantities would be around Rs.14,00,000.
The capacity of the company is limited to 15,00,000 hours. It is envisaged that the same should be utilized in the best possible
manner. In the process, in case any shortfall/excess is noticed in the aggregate sales value within a margin of around 2%, the same
would be acceptable.
Based on the above data you are required to prepare a budget for Beta. Limited which would optimize the profit performance of
the company, clearly stating the following budgets:
i. Budgeted profit & loss account
ii. Sales quantity and value budget
iiL Material cost budget
iv. Overhead budget.
Please state your workings clearly in relation to arriving at the sales quantity budget in light of the various constraints stated
above.
3.
4. RG Company furnished the following data. Ascertain net income of the company under
1. Absorption Costing Method.
2. Marginal Costing Method.
Particulars Amount
(Rs.)
Direct Material cost per unit 3
Direct Labor cost per unit 5
Variable manufacturing OH cost per unit 2
Total fixed manufacturing OH per year 60,000
Number of units produced per year - 20,000 units
Closing stock - 5,000 units
Sales price per unit
-
Rs. 30
Variable selling expenses - Rs. 2 per unit
Fixed selling expenses - Rs. 40,000
5. Particulars Amount
(Rs.)
Amount
(Rs.)
Sales 4,50,000
Less Variable costs
Variable cost of goods sold
Opening inventory 0
Cost of goods produced( 20,000 units
@ Rs. 10 )
2,00,000
Cost of goods available for sale 2,00,000
Closing stock (5000 units @ Rs. 10) 50,000
Variable cost of goods sold 1,50,000
Variable selling expenses(15000 units
@ Rs. 2)
30,000
Total variable cost of good sold 1,80,000
Contribution 2,70,000
Less: Fixed costs
Manufacturing OH 60,000
Fixed selling expense 40,000 1,00,000
Net Income 1,70,000
Marginal Costing Income statement
Particulars Amount
(Rs.)
Amount
(Rs.)
Sales 4,50,000
Less Cost of goods sold
Variable cost of goods sold
Opening inventory 0
Cost of goods produced( 20,000 units
@ Rs. 13 )
2,60,000
Cost of goods available for sale 2,60,000
Closing stock (5000 units @ Rs. 13) 65,000
1,95,000 1,95,000
Gross Margin 2,55,000
Less Fixed costs 40,000
Variable selling expenses (15,000
@ 2)
30,000 70,000
Net Income 1,85,000
Income statement under Absorption Costing
Particulars Amount
(Rs)
Direct Materials 3
Direct Labor 5
Variable manufacturing cost 2
Per unit cost 10
Particulars Amount
(Rs)
Direct Materials 3
Direct Labor 5
Variable manufacturing cost 2
Fixed manufacturing cost
(60000/20000)
3
Per unit cost 13
Cost per unit under marginal costing Cost per unit under absorption costing
6.
7. Pacific, Inc. is a technology consulting firm focused on Web site development and integration of Internet
business applications. The president of the company expects to incur $775,000 of indirect costs this year,
and she expects her firm to work 5,000 direct labor hours. Pacific systems consultants provide direct labor
at a rate of $310 per hour. Clients are billed at 160% of direct labor cost. Last month, Pacific's consultants
spent 150 hours on Crockett's engagement.
Requirements
1. Compute Pacific's predetermined overhead allocation rate per direct labor hour.
2. Compute the total cost assigned to the Crockett engagement.
3. Compute the operating income from the Crockett engagement.
8. DK Ltd. manufactures and sells two products – D and K. The company has furnished the following data pertaining to cost
per unit of the products:
Particulars
D
(Rs.)
K
(Rs.)
Direct material 96 72
Direct labor (at the rate of Rs.20 per hour) 80 100
Variable production overheads at the rate of Rs.24 per hour 24 48
200 220
The fixed manufacturing overheads of the company are Rs.4,00,000 per month and the budgeted direct labor hours are
20,000 per month. The company has carried out an analysis of its production support activities and found that its fixed cost
varies in accordance with non-volume-related factors, which are given under:
Activity Cost driver
D
(No. of times)
K
(No. of times)
Total cost
(Rs.)
Setup Production run 30 20 52,000
Material handling Production run 20 30 1,20,500
Inspection Inspection 26 65 2,27,500
4,00,000
Budgeted production is 1,250 units of product D and 3,000 units of Product K. The company desires to earn a profit of
20% on total production costs.
Compute the selling prices of product K, using Activity based costing.
9. Particulars
D K Total
(Rs.) (Rs.) (Rs)
Set ups (30:20) 31,200 20,800 52,000
Materials handling (20:30) 48,200 72,300 1,20,500
Inspection (26:65) 65,000 1,62,500 2,27,500
Total 1,44,400 2,55,600 4,00,000
Budgeted units 1,250 units 3,000 units
Overheads per unit Rs.115.52 Rs.85.20
D K
Price of the products
Variable costs Rs.200.00 Rs.220.00
Fixed manufacturing costs Rs.115.52 Rs. 85.20
Rs.315.52 Rs.305.20
Profit mark-up (20%) Rs. 63.10 Rs. 61.04
Rs.378.62 Rs.366.24
10. Believing that its traditional cost system may be providing misleading information, Munnabhai Ltd. is considering to
implement Activity Based Costing (ABC) approach. It now employs a full cost system and has been applying its
manufacturing overhead on the basis of machine hours. The organization plans on using 50,000 direct labor hours and 30,000
machine hours in the coming year. The following data show the budgeted manufacturing overhead:
Activity Cost driver Budgeted
activity
Budgeted cost
(Rs.)
Material handling
Setup costs
Machine costs
Quality control
No of parts handled
No of setups
Machine hours
No of batches
60,00,000
750
30,000
500
7,20,000
3,15,000
5,40,000
2,25,000
Total overhead cost 18,00,000
Cost, sales, and production data for one of the organization’s finished products for the coming year are as follows:
Prime costs:
Direct material cost per unit Rs.4.40
Direct labor cost per unit (0.05 Direct labor
hours at the rate of Rs.15 per Direct labor hours) Re.0.75
Total prime cost Rs.5.15
Sales and production data:
Expected production and sales
Batch size
Setup
Total parts per finished unit
Machine hours required
20,000 units
5,000 units
2 per batch
5 parts
80 machine hours per batch
If the organization employs an ABC system, compute the cost per unit of the product for the coming year
11. Materials handling cost per part is Rs.0.12 (Rs. 7,20,00060,00,000),
cost per setup is Rs. 420 (Rs. 3,15,000 750),
machining cost per hour is Rs. 18 (Rs. 5,40,00030,000), and
quality cost per batch is Rs.450 (Rs.2,25,000 500).
Hence, total manufacturing overhead applied is Rs. 22,920 [(5 parts per unit x 20,000 units x Rs.0.12) + (4
batches x 2 setups per batch x Rs. 420)+ (4 batches x 80 machine hours per batch x Rs.18)+(4 batches x Rs.
450)]. The total unit cost is Rs. 6.296 or 6.30[Rs. 5.15 prime cost + (Rs.22,92020,000 units)overhead]
12.
13.
14.
15.
16.
17.
18. Triple Limited makes three types of gold watch – the Diva (D), the Classic (C) and the Poser (P). A traditional product costing system is used at present; although an
activity based costing (ABC) system is being considered. Details of the three products for a typical period are:
Direct labour costs $6 per hour and production overheads are absorbed on a machine hour basis. The overhead absorption rate for the period is $28
per machine hour.
Required:
(a) Calculate the cost per unit for each product using traditional methods, absorbing overheads on the basis of machine hours. (b) Calculate the cost per unit
for each product using ABC principles (work to two decimal places).
(c) Explain why costs per unit calculated under ABC are often very different to costs per unit calculated under more traditional methods. Use
the information from Triple Limited to illustrate.
(d) Discuss the implications of a switch to ABC on pricing and profitability.