Management Accounting: Cost Analysis and Activity Drivers

Running head: MANAGEMENT ACCOUNTING
Management Accounting
Name of the Student:
Name of the University:
Authors Note:

MANAGEMENT ACCOUNTING
1

MANAGEMENT ACCOUNTING
2
Contents
Requirement 1:.................................................................................................................................3
Requirement 2:.................................................................................................................................5
Requirement 3:.................................................................................................................................5
Requirement 4:.................................................................................................................................9
Requirement 5:...............................................................................................................................17
Requirement 6:...............................................................................................................................17
Requirement 7:...............................................................................................................................17
Requirement 8 and 9:.....................................................................................................................18
Introduction:..............................................................................................................................18
Discussion and analysis:............................................................................................................18
Conclusion:................................................................................................................................21
References:....................................................................................................................................22

MANAGEMENT ACCOUNTING
3
Requirement 1:
Requirement 1
Activity
centres
Wages Building
cost
Deprecia
tion
Consuma
bles
Energy Other Total
activity
centre
cost
New
product
developme
nt
172,7
36.22
87,3
13.43
1,101.
69
5,6
05.75
1,53
5.43
268,2
92.53
Sales and
distribution
748,5
23.62
203,7
31.34
1,101.
69
3,3
63.45
6,65
3.54
963,3
73.65
Inspecting 115,1
57.48
203,7
31.34
1,101.
69
3,3
63.45
1,02
3.62
324,3
77.59
Mincing 1,842,5
19.69
378,3
58.21
520,0
00.00
22,033.
90
72,8
74.74
16,37
7.95
2,852,1
64.49
Mixing 1,842,5
19.69
378,3
58.21
650,0
00.00
14,322.
03
109,3
12.11
16,37
7.95
3,010,8
90.00

MANAGEMENT ACCOUNTING
4
Smoking
and
packing
1,497,0
47.24
378,3
58.21
130,0
00.00
22,033.
90
72,8
74.74
13,30
7.09
2,113,6
21.18
Administr
ation
748,5
23.62
203,7
31.34
2,203.
39
2,8
02.87
6,65
3.54
963,9
14.77
Corporate
manageme
nt
345,4
72.44
116,4
17.91
1,101.
69
2,8
02.87
3,07
0.87
468,8
65.79
7,312,5
00.00
1,950,0
00.00
1,300,0
00.00
65,000.
00
273,0
00.00
65,00
0.00
Image view:
Requirement 1
acvtivity centres Wages Building cost Depreciation ConsumablesEnergy Other Total
New product development 172,736.22 87,313.43 1,101.69 5,605.75 1,535.43 268,292.53
Sales and distribution 748,523.62 203,731.34 1,101.69 3,363.45 6,653.54 963,373.65
Inspecting 115,157.48 203,731.34 1,101.69 3,363.45 1,023.62 324,377.59
Mincing 1,842,519.69 378,358.21 520,000.00 22,033.90 72,874.74 16,377.95 2,852,164.49
Mixing 1,842,519.69 378,358.21 650,000.00 14,322.03 109,312.11 16,377.95 3,010,890.00
Smoking and packing 1,497,047.24 378,358.21 130,000.00 22,033.90 72,874.74 13,307.09 2,113,621.18
Administration 748,523.62 203,731.34 2,203.39 2,802.87 6,653.54 963,914.77
Corporate management 345,472.44 116,417.91 1,101.69 2,802.87 3,070.87 468,865.79
7,312,500.00 1,950,000.00 1,300,000.00 65,000.00 273,000.00 65,000.00
Requirement 2:
Activity Labour Building
cost
Machine
cost
Total cost

MANAGEMENT ACCOUNTING
5
Set up scales 365,625
.00
97,500.
00
463,125.
00
Weigh ingredients 731,250
.00
97,500.
00
828,750.
00
Load mixers 1,462,500.
00
195,000.
00
1,657,500.0
0
Operate mixers 3,656,250.
00
1,170,000.
00
1,300,000.
00
6,126,250.0
0
Clean mixers 731,250
.00
195,000.
00
926,250.
00
Move mixture to smoke house 365,625
.00
195,000.
00
560,625.
00
Total 7,312,500.
00
1,950,000.
00
1,300,000.
00
10,562,500.0
0
Requirement 3:
List of activities
Activity Activity
cost
Activity
drivers
Annual quantity of
activity driver
Cost of per unit
of cost driver
Corporate 3 Assigned directly to products