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Accounting for Managers Assignment | Accounting Assignment

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Added on  2020-05-16

Accounting for Managers Assignment | Accounting Assignment

   Added on 2020-05-16

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Running head: ACCOUNTING FOR MANAGERSAccounting for ManagersName of the Student:Name of the University:Author’s Note:Course ID:
Accounting for Managers Assignment | Accounting Assignment_1
1ACCOUNTING FOR MANAGERSTable of ContentsAnswer 1: Bonza Handtools Limited..............................................................................................2Answer 2: The Tassie Company......................................................................................................6(i) Production capacity of the factory at 200,000 units per year:................................................6(ii) Manufacturing ability of the factory with 180,000 units each year:......................................7Question 3: ABC Limited................................................................................................................81. Allocation rate of Overhead:...................................................................................................82. Total costs associated with special order:................................................................................83. Cost related with special order:...............................................................................................84. Minimum price for each trailer:...............................................................................................95. Importance of activity-based costing with different overhead cost pools for pricing.............9Question 4: Role of overhead segmentation in allocating overhead costs to individual jobs orservices............................................................................................................................................9References:....................................................................................................................................11
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2ACCOUNTING FOR MANAGERSAnswer 1: Bonza Handtools LimitedBonza Handtools Limited’s Profitability position for the current plan and threealternativesParticularsNoteDetailsExisting PlanAlternative 1Alternative 2Alternative 3Actual Sales (A)UnitsPer annum 20,000 20,000 25,000 24,000 Sales (B)UnitsBeginning 3 months 6,000 6,000 6,000 10,000 Sales (C) UnitsRemaining Period 14,000 14,000 19,000 14,000 Selling price/unit (D) $Beginning 3 months 130 140 130 120 Selling price/unit (E) $Remaining Period 130 140 130 130 Variable manufacturing cost/unit (F)$Provided 50 50 55 50 Variable selling and administrativecost/unit (G)$Provided 30 30 30 30 Total sales (G) $[(B) x (D) + (C) x (E)] 2,600,000 2,800,000 3,250,000 3,020,000 Total variable manufacturing cost (H) $[(A) x (F)] 1,000,000 1,000,000 1,375,000 1,200,000 Total selling and administrative cost (I) $[(A) x (G)] 600,000 600,000 750,000 720,000 Contribution (J) $[(G) - (H) - (I)] 1,000,000 1,200,000 1,125,000 1,100,000 Fixed manufacturing $Provided 400,000 400,000 400,000 400,000
Accounting for Managers Assignment | Accounting Assignment_3
3ACCOUNTING FOR MANAGERScost (K)Fixed selling and administrative cost/unit (L)$Provided 300,000 300,000 300,000 300,000 Advertising and promotion cost (M)$Provided - 125,000 50,000 40,000 Earnings Before Interest and Tax (EBIT) (N) $[(J) - (K)- (L) - (M)] 300,000 375,000 375,000 360,000 Interest (O)$Not Applicable/Provided - - - - Earnings Before Tax (EBT) (P) $[(N) - (O)] 300,000 375,000 375,000 360,000 Tax (Q)$Not Applicable/Provided - - - - Earnings After Tax (EAT) $[(P) - (Q)] 300,000 375,000 375,000 360,000 To,The Directors of Bonza Handtools LimitedDate: 04.01.2018Subject: Evaluation of the three present proposalsRespected Sir,After detailed elaboration regarding the three present proposals, the report was preparedthrough indicating the impact and advantages of the proposals within the company. These areexplained under:
Accounting for Managers Assignment | Accounting Assignment_4

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