DO YOU WANT TO EXCEL IN ACC512 MANAGEMENT ACCOUNTING FOR COSTS AND CONTROL ASSIGNMENT? HIRE TRUSTED TUTORS FROM EXPERTSMINDS AND ACHIEVE SUCCESS!
ACC512 Management Accounting for Costs and Control Assignment - Charles Sturt University, Australia
Question 1 - Budget
1. Prepare a revenue budget for the upcoming academic year.
Revenue budget for the upcoming year:
|
No of students in the current year
|
Growth
|
No of students in the upcoming year
|
|
15000
|
5%
|
15750
|
|
(in $Mns)
|
|
Revenue from students
|
|
|
(15750x2x4x3500)
|
441
|
|
Academic Staff Salary
|
|
|
(120000x262.5)
|
31.5
|
|
(15750/80 = 196.875x4/3 = 262.5)
|
|
|
Awards distributed (150 x 14000 x 2)
|
4.2
|
|
Surplus over expenditure
|
405.3
|
2. Determine the number of staff needed to cover classes.
No of staff needed:
No of classes: 15750/80 = 196.875
No of staff: 197 x 4/3 = 263
3. List at least five actions that Resort Island might take to accommodate the growing student numbers.
Action that can be taken:
- Increase the number of subjects per day
- Appointment of staff per time on an expertise basis
- Can outsource the teaching department to some student
- Can promote the teachers on an incentive basis
- Advertise the work culture of the organization
EXPERTSMINDS.COM ACCEPTS INSTANT AND SHORT DEADLINES ORDER FOR ACC512 MANAGEMENT ACCOUNTING FOR COSTS AND CONTROL ASSIGNMENT - ORDER TODAY FOR EXCELLENCE!
4. Does the DVC really understand the linkages with the budgeting process? Explain.
Yes DVC understands the linkages with the budgeting processes , as he says that since academic staff the biggest expense for the university is available , making other budgets will be comparately easy because a major of the expense is already chunked out.
Question 2 - Standard Costing
1. Calculate the number of standard clerical hours allowed in April, given the number of applications processed.
|
Type
|
Standard hours per Application
|
Multiply: Number of Application
|
Standard hours allowed
|
|
Health
|
1
|
375
|
375
|
|
Life
|
1.5
|
300
|
450
|
|
Automobile
|
2
|
150
|
300
|
|
Renter
|
2
|
600
|
1,200
|
|
Homeowner
|
5
|
300
|
1,500
|
|
Total Standard hours allowed in April
|
3,825
|
2. Explain why the company's flexible budget should be based on the number of clerical hours allowed rather than on the number of applications processed.
The company's flexible budget should be based on a number of clerical hours allowed, rather than the number of applications processed since the number of clerical hours is the cost driver for variable overhead costs i.e. the budget will change on the basis of clerical hours.
3. Using Excel, construct a formula flexible overhead budget for the company, and calculate the flexible budget for total overhead cost in April. Include both the formula view and results view of your spreadsheet in your Word document.
|
Good Health Insurance Company Flexible Budget: Overhead Cost For April
|
|
Policy Application Category
|
Activity Level ( Clerical Hours)
|
Flexible Budget ( $ )
|
|
Health
|
375 hrs
|
$ 3,750
|
|
Life
|
450
|
4,500
|
|
Automobile
|
300
|
3,000
|
|
Renter
|
1,200
|
12,000
|
|
Homeowner
|
1,500
|
15,000
|
|
Total Variable Overhead Cost
|
|
38,250
|
|
Fixed Overhead Cost
|
|
6,000
|
|
Budgeted Total Overhead Cost
|
|
$ 44,250
|
NEVER LOSE YOUR CHANCE TO EXCEL IN ACC512 MANAGEMENT ACCOUNTING FOR COSTS AND CONTROL ASSIGNMENT - HIRE BEST QUALITY TUTOR FOR ASSIGNMENT HELP!
Formula View:
|
Type
|
Standard hours per Application
|
Multiply: Number of Application
|
Standard hours allowed
|
|
Health
|
1
|
375
|
=F5*G5
|
|
Life
|
1.5
|
300
|
=F6*G6
|
|
Automobile
|
2
|
150
|
=F7*G7
|
|
Renter
|
2
|
600
|
=F8*G8
|
|
Homeowner
|
5
|
300
|
=F9*G9
|
|
Total Standard hours allowed in April
|
=SUM(H5:H9)
|
|
|
|
|
|
|
|
|
|
Good Health Insurance Company Flexible Budget: Overhead Cost For April
|
|
Policy Application Category
|
Activity Level (Clerical Hours)
|
Flexible Budget ( $ )
|
|
|
Health
|
375
|
=F17*10
|
|
|
Life
|
450
|
=F18*10
|
|
|
Automobile
|
300
|
=F19*10
|
|
|
Renter
|
1200
|
=F20*10
|
|
|
Homeowner
|
1500
|
=F21*10
|
|
|
Total Variable Overhead Cost
|
|
=SUM(G17:G21)
|
|
|
Fixed Overhead Cost
|
|
6000
|
|
|
Budgeted Total Overhead Cost
|
|
=G22+G23
|
|
4. Prepare a short memorandum to the management of Good Health evaluating the benefits that standard costing systems can offer a business.
Standard costing facilitates budgetary control. The implementation of the standard costing method allows for comparing the actual processing overhead cost in each policy category with the flexible budget numbers. If the variances are found to be unfavourable, the originating causes should be investigated, and corrective action should be taken. This would go a long way in cost control and planning.
It would also help the management to realize whether realistic standards are being used or not. There is no point in using standards which are either not achievable or super easy to achieve.
ORDER NEW ACC512 MANAGEMENT ACCOUNTING FOR COSTS AND CONTROL ASSIGNMENT & GET 100% ORIGINAL SOLUTION AND QUALITY WRITTEN CONTENTS IN WELL FORMATS AND PROPER REFERENCING.
Question 3 - Activity based costing
1. Calculate the total overhead that should be assigned to the order for development of chemicals.
2. What is the overhead cost per box of chemicals?
Overhead Cost per box
|
Machine Setup ( 4 x 3000)
|
12000
|
|
Material handling (3 x 10000)
|
30000
|
|
hazardous waste control ( 7.5 x 2000)
|
15000
|
|
Quality Control (112.5 x 10)
|
1125
|
|
Other overhead costs ( 15x500)
|
7500
|
|
Total overhead cost
|
65625
|
|
No of boxes in order
|
1000
|
|
Overhead cost per box
|
65.625
|
3. If Pix Photographic Supply wee to use a plant-wide predetermined overhead rate based on machine hours, calculate he rate per hour.
Overhead rate based on machine hours = 937500/20000 = 46.875 per machine hour.
4. Under the approach in requirement 3, how much overhead would be assigned to the order for development chemicals: 1. in total 2. per box of chemical?
Overhead cost assigned to order
500 x 46.875 =23437.5
Overhead cost per box of chemical = 23437.5/1000 = 23.4375 per box
|
ABC
|
Machine hour
|
Difference
|
|
Overhead cost per unit
|
65.625
|
23.437
|
42.188
|
GET GUARANTEED SATISFACTION OR MONEY BACK UNDER ACC512 MANAGEMENT ACCOUNTING FOR COSTS AND CONTROL ASSIGNMENT HELP SERVICES OF EXPERTSMINDS.COM - ORDER TODAY NEW COPY OF THIS ASSIGNMENT!
5. Explain why these two product costing systems result in such widely differing costs. Which system do you recommend? Why?
There is a wide difference in per box overhead cost , due to the allocation base.
ABC system allocates the accurate overheads , because it considers different activities with different cost drivers, instead of single plant wide rate.
Hence I will recommend the ABS system for cost allocation for accurate costing of products.
6. Calculate the unit cost of a production order for 100 specially coated plates used in film development.
Calculation of Unit cost:
|
Machine Setup
|
$ 6,000
|
|
Material Handling
|
2,400
|
|
Hazardous Waste Control
|
2,250
|
|
Quality Control
|
337.50
|
|
Other Overhead
|
750
|
|
Total Overhead
|
11,737.50
|
|
Number of plates
|
100
|
|
Overhead cost per plate
|
117.375
|
|
Direct Materials
|
180
|
|
Direct Labor
|
60
|
|
Unit Cost
|
$ 357.375
|
Question 4 - Relevant information for decisions - Write a letter providing an analysis and a recommendation with respect to whether the banolide should be sold at split off or processed further. Also include in this letter the key issues that the management should consider when making the outsourcing decision.
To
The Management,
Cool Pool Ltd
Subject: Analysis and recommendation regarding kitrocide
Please find below analysis and our recommendation
Analysis of additional processing/further processing
Sales value after further processing(A) : $20000
Additional Processing cost (B) : $26,200
Additional Loss: $6200
Recommendation:
The company should not process banolide further . Banolide should be sold at split-off thereby reducing the loss by $6200, and the loss will be restricted to (12000-5000) = $7000
Key Issues:
- Cost - Quality of product - Pricing
- Delivery Schedule - Service Level agreement
- Communication
DO WANT TO HIRE TUTOR FOR ORIGINAL ACC512 MANAGEMENT ACCOUNTING FOR COSTS AND CONTROL ASSIGNMENT SOLUTION? AVAIL QUALITY ACC512 MANAGEMENT ACCOUNTING FOR COSTS AND CONTROL ASSIGNMENT WRITING SERVICE AT BEST RATES!
Question 5 - Variable costing
1. Prepare an income statement for Slumberworld for the current year using: 1. absorption costing 2. variable costing
2. Which costing method, absorption costing or variable costing, shows a higher operating profit? Why?
3. What would be Slumberworld's finished goods inventory cost on 31 December, under: 1. absorption costing 2. variable costing.
4. Which costing method, variable or absorption, would you recommend to Slumberworld's management? Why?
|
Absorption Costing
|
Variable Costing
|
|
Direct materials
|
8.00
|
8.00
|
|
Direct labor
|
4.00
|
4.00
|
|
Variable manufacturing overhead
|
2.40
|
2.40
|
|
Fixed manufacturing overhead (actual and planned)
|
5.00
|
|
|
Unit Product cost
|
19.40
|
14.40
|
|
a)
|
|
|
|
Slumberworld
|
|
|
|
Absorption Income Statement
|
|
|
|
Units
|
13,500.00
|
|
|
Sales (@ $60 per unit)
|
810,000.00
|
|
|
Cost of goods sold (@ $19.40 per unit)
|
261,900.00
|
|
|
Gross margin
|
548,100.00
|
|
|
Fixed selling and administrative expenses
|
90,000.00
|
|
|
Variable selling and administrative expenses
|
13,500.00
|
|
|
Net operating income
|
444,600.00
|
|
|
|
|
|
Slumberworld
|
|
|
|
Variable Income Statement
|
|
|
|
Units
|
13,500.00
|
|
|
Sales (@ $60 per unit)
|
810,000.00
|
|
|
Cost of goods sold (@ $19.40 per unit)
|
261,900.00
|
|
|
Variable selling and administrative expenses
|
13,500.00
|
|
|
Contribution margin
|
534,600.00
|
|
|
Fixed selling and administrative expenses
|
90,000.00
|
|
|
Fixed manufacturing overhead (actual and planned)
|
75,000.00
|
|
|
Net operating income
|
369,600.00
|
|
|
|
|
|
b)
|
|
|
|
Absorption costing has higher operating Income
|
|
|
|
|
|
|
c) What would be Slumberworld's finished goods inventory cost on 31 December, under:
|
|
|
|
absorption costing = 1500 units x 19.40
|
29,100.00
|
|
|
variable costing = 1500 units x 14.40
|
21,600.00
|
|
|
|
|
|
d)
|
|
|
|
Absorption costing is a better option because fixed manufacturing overhead costs are expensed when the product is sold.
|
|
|
GETTING STUCK WITH SIMILAR ACC512 MANAGEMENT ACCOUNTING FOR COSTS AND CONTROL ASSIGNMENT? ENROL WITH EXPERTSMINDS'S ACC512 MANAGEMENT ACCOUNTING FOR COSTS AND CONTROL ASSIGNMENT HELP SERVICES AND GET DISTRESSED WITH YOUR ASSIGNMENT WORRIES!
Avail the best Charles Sturt University, Australia Assignment Help Services for related units and courses such as:-
- ACC501 Business Accounting & Finance Assignment Help
- ACC512 Management Accounting for Costs & Control Assignment Help
- ACC514 Financial Accounting Assignment Help
- ACC515 Accounting & Finance Assignment Help
- ACC518 Current Developments In Accounting Thought Assignment Help
- ACC525 Financial Accountability in the Public Sector Assignment Help
- ACC537 Social and Environmental Accounting Assignment Help
- ACC539 Accounting Information Systems Assignment Help
- ACC544 Decision Support Tools Assignment Help
- ACC549 Financial Literacy Assignment Help
- ACC566 Acc Systems and Processes Assignment Help
- ACC567 Financial Accounting Assignment Help
- ACC568 Auditing Assignment Help
- ACC585 Financial Statement Analysis and Valuation Assignment Help