Management Accounting: Solved Assignments and Essays - Desklib

Management Accounting
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Table of Contents
Table of Contents.............................................................................................................................2
QUESTION 1...................................................................................................................................4
A): Schedule of goods manufactured for the period ending 31st march 2018.............................6
B): Complete the table.................................................................................................................7
C) (i) Calculation of total cost of job X10...................................................................................7
(ii) Undervaluation and over-valuation........................................................................................8
D): (i) Schedule of Equivalent unit..............................................................................................8
(ii): Total cost of finished goods..................................................................................................8
(iii) Total cost of finished good for the month of November......................................................8
(e): Allocation of cost to support department to manufacturing line 1 and 2.............................9
(f):(i) Calculation for EOQ..........................................................................................................9
(ii): Interpretation.......................................................................................................................10
(g): Allocate the joint manufacturing cost.................................................................................10
QUESTION 2.................................................................................................................................10
(a) Preparation of profit statement...........................................................................................10
(b): Allocation of the overhead cost to each activity.................................................................11
(c): Activity rate for each activity cost pool..............................................................................11
(d): Calculate the total overhead cost.........................................................................................12
(e): Preparing a profit statement................................................................................................13
(f): Indication of the activity based costing information...........................................................13
QUESTION 3.................................................................................................................................13
(a) (I) Sales Budget for the period ending December 2019.......................................................13
(a) (ii) Production Budget for the period ending December 2019.............................................14
(a) (iii) Direct material purchases Budget for the period ending December 2019.....................14
(b): Cash Budget for the period ending December 2019...........................................................16
QUESTION 4.................................................................................................................................16
(a): Use of Historic data.............................................................................................................16
(b): Difference............................................................................................................................17
(c) (i): Direct material variance..................................................................................................17
(ii): Calculation for direct labour rate variance..........................................................................17

(iii): Variable overhead spending...............................................................................................17
(iv): Fixed overhead volume variance.......................................................................................17
REFERENCES..............................................................................................................................19
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QUESTION 1
Product A Product B Product Q
Budget
Units 3000 2000 600
hrs. 3 4 5
Direct Labor 13000 13000 13000
39000 52000 65000
Variable
Overhead 13000 13000 13000
39000 52000 65000
Total Cost 78000 104000 130000
Cost per unit 26 52
216.66666
7
Actual
production 1800 800 400
Hrs. 3 4 5
Direct Labor 12000 12000 12000
36000 48000 60000
Variable
Overhead 40000 40000 40000
Total Cost 76000 88000 100000
Cost per unit
42.222222
2 110 250
Direct
labor
Variable
o/h
Hrs. 13000 13000
Rate per
hour 2 4
Expenditur
e 26000 52000 budgeted
26000 40000 actual
Produc
t
Standard Time
Per Unit Budgeted Units
Total Standard
Hour
Actual Production
Units
Total
Production
Hour
A 3 3000 9000 1800 5400
B 4 2000 8000 800 3200
Q 5 500 2500 400 2000