MANAGEMENT ACCOUNTING Assessment Type: Case study – 2000 + 10% word report and analysis

MANAGEMENT ACCOUNTING
Assessment Type: Case perpend – 2000 + 10% expression announce and partition
Topic: Management Accounting Problem.
Task Details: Students are to analyse the ardent notification, restraintm calculations where apt and attract apt, cherished conclusions and restraintm justified recommendations. Responses are to be restraintmatted into a professional announce restraint each multiply of each doubt, as would be expected of someone agoing in a existent accountant’s function. Research Students demand to rootation their partition with relation from the extract and a requirements: narrowness of seven (7) decent, reliable, popular and academically grateful sources – hinder with your master if unsure of the fibre of sources.
MANAGEMENT ACCOUNTING
The Genre gang is the manufacturer of brace consequences the Basic and the Recent .Details of evolution facts and consequence consume facts are as follows:
Basic Recent
Straightforward representative 40 60
Straightforward labour 2 hours 3 hours
Manufacturing over 2 hours 3 hours
Straightforward labour consume per hour $15 per hour $15 per hour
Evolution 2000 aces 10000 aces
Manufacturing over has transmittedly used straightforward labour hours to reckon the presturdy over reprimand.
The Manufacturing over budget is as follows:
Set up consumes $360,000
Engineering consumes 180,000
Implement kindred consumes 900,000
Insert kindred consumes 192,000
Total $1,632,000
The Genre gang has transmittedly figured its consequences at 120 per cent of manufacturing consume .
Recently the Genre gang has root it has had awkwardness selling its recent consequence with a antagonist entering the traffic from overseas and making tangible sales at a figure considerably lowerneathneath Genre’s figure restraint the Recent consequence .
The CEO of Genre ,Jane Monk, cannot learn how this could be and has asked you to investigate the stuff.You begin to perpend some of the facts and flow to hinder extinguished a novel entrance to locate consumes named Activity Based Consumeing .You keep managed to identify the subjoined
information:
Activity Consume Pool Consume Driver Budgeted smooth of Consume Driver
Set up consumes Number of evolution runs 80 runs
Engineering consumes Engineering changes 200 engineering changes
Implement kindred consumes Implement hours 18,000 hours
Insert kindred consumes Base intervenience in sq ft 3,840 sq ft
In importation the subjoined notification has been sturdy :
–The Basic consequence is contrived in evolution runs of 50 aces each and the Recent consequence
is contrived in 250 ace batches
–75% of the engineering changes are used by the Basic consequence with the retaining 25% used by the
Recent consequence
–Each Basic consequence requires 4 implement hours when-in-fact each Recent consequence requires 1 implement
hour
–The insert has 3,840 balance feet of base intervenience with 80% of it used in the evolution of the Basic
product
Required:
Using the notification aloft and your notice of Activity Based Consumeing you are required to stipulate answers to the subjoined :
(a) Reckon the presturdy over reprimand that would be used lowerneathneath transmitted over
costing
(b) Reckon the consequence consume per ace restraint the Basic and Recent consequences lowerneathneath transmitted consumeing
(c) Reckon the figure that would be teeming restraint the Basic and the Recent consequences lowerneath
transmitted consumeing
(d) Reckon the consume per Activity restraint each consume pool.
( e) Reckon the consume per ace restraint Basic and Recent consequences using Activity Based Consumeing
(f) Based on your calculations with regard to Basic and Recent consequences observe upon whether
either consequence has been overcosted or lowerneathcosted
(g) Discuss the benefits that can be obtained from using an Activity Based Consumeing regularity and

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