Management of Financial Information

MANAGEMENT OF
FINANCIAL INFORMATION

TABLE OF CONTENTS
TABLE OF CONTENTS................................................................................................................2
SECTION A.....................................................................................................................................1
SECTION B.....................................................................................................................................1
2...................................................................................................................................................1
3...................................................................................................................................................2
4...................................................................................................................................................3

SECTION A
1- d) Managers salary
2 – c) Total depreciation expense of business.
3 – b) 16.3
4 – d) 63000
5 – b) Nails to fit fabric to seat of chair
6 – a) 2750
7 – a) 4167 units
8 – b) 63070
9 – c) Decision making
10 – c) Warehouse rent
11 – c) Direct costs are those costs that are directly associated with product or service.
12 – a) Over recovery of £36,205
13 – c) 18.8
14 – d) Floor Area
15 –a) Budget
16 – a) 8 per direct machine hour
17 – b) Variance analysis
18 – c) Variable
19 – b) Machine hours
20 – d) Planning
SECTION B
2.
a) Direct labour hours should be used to apportion the overheads as they are more high than the
machine hours and it requires mixing by hand. It will provide more reliable apportion of the
overhead costs.
b)
Direct labour hour cost
Production overhead 550000
Direct labour hours 27000
Rate per labour hour 20.37
1