ACC203 Management Accounting

MANAGEMENT
ACCOUNTING
STUDENT ID:
[Pick the date]

Question 1
a) For the computation of total incurred cost, the respective costs in the two departments
ought to be computed as carried out below.
Unit bottle cost for the company = (Total production costs/Total production quantity) =
(192000/160000) = $ 1.2
b) The journal entries for the various costs in the two departments can be recorded as
highlighted below

Question 2
The specified variances have to be computed on the basis of information provided.
a) The following formula is relevant for the specified variance (Bhimani, Horngren, Datar &
Foster,2017).
Considering the fact that the actual material price was higher than the standard material price,
thus the given variance would be termed as unfavourable.
b) The following formula is relevant for the specified variance (Damodaran, 2015).
It is noteworthy that the higher actual quantity of material has been consumer than the
standard quantity and thus the given variance would be termed as unfavourable.
c) The following formula is relevant for the specified variance (Drury, 2016).