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Introduction to MANAGEMENT ACCOUNTING

   

Added on  2021-05-31

15 Pages2611 Words225 Views
INTRODUCTION TO MANAGEMENT ACCOUNTING1

ContentsSolution 1:.............................................................................................................................................3Solution 2:.............................................................................................................................................5Solution 3:.............................................................................................................................................7Solution 4:...........................................................................................................................................10Solution 5:...........................................................................................................................................12Bibliography........................................................................................................................................142

Solution 1:Statement of Cost- Traditional ApproachParticulars Basic Model Advance ModelUnits produced and sold 1,600 1,500Direct Material cost per unit 325 560Direct Labour cost per unit 150 260Total Material Cost (1600*325)+(1500*560) 5,20,000 8,40,000Total Labour cost (1600*150)+(1500*260) 2,40,000 3,90,000Total Allocated Overhead cost 1,43,750 1,06,250Total Cost 9,03,750 13,36,250Cost Price Per unit 565 891Total cost:-Basic Model= 520000+240000+143750=903750Total units= 1600 unitCost per unit =564.84-Advance Model=840000+390000+106250=1336250Total units= 1500 unitCost per unit = 891Allocation of Overhead-Traditional approachParticulars Amount Inspection 20,000 Assembly 90,000 Production Scheduling 1,05,000 Machine set-up 35,000 Total Overhead to be allocated 2,50,000 Total Machine Hours consumed 8,000 Overhead per Machine Hour 31.25 - Overhead Allocated to Basic Model (4600*31.25) 1,43,750 - Overhead Allocated to Advance Model (3400*31.25) 1,06,250 Total Overhead to be Allocated=20000+90000+105000+35000= $250000Total Machine Hour Consumed= 4600+3400= 8000 hours3

Overhead allocation per machine hour= 250000/8000= $ 31.254

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