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

MANAGEMENT ACCOUNTING
Assessment Type: Case consider – 2000 + 10% message recital and anatomy
Topic: Management Accounting Problem.
Task Details: Students are to analyse the abandoned instruction, perform calculations where pertinent and drag pertinent, cheered conclusions and perform justified recommendations. Responses are to be restraintmatted into a functional recital restraint each keep-akeep-apart of each interrogation, as would be expected of someone instituted in a novel accountant’s service. Research Students scarcity to aid their anatomy with relation from the quotation and a requirements: poverty of seven (7) decent, true, prevalent and academically grateful sources – inhibit with your governor if unsure of the power of sources.
MANAGEMENT ACCOUNTING
The Genre assembly is the manufacturer of brace emanations the Basic and the Advanced .Details of origination axioms and emanation consume axioms are as follows:
Basic Advanced
Trodden embodied 40 60
Trodden labour 2 hours 3 hours
Manufacturing aloft 2 hours 3 hours
Trodden labour consume per hour $15 per hour $15 per hour
Origination 2000 parts 10000 parts
Manufacturing aloft has unwrittenly used trodden labour hours to summon the preresolute aloft reprove.
The Manufacturing aloft budget is as follows:
Set up consumes $360,000
Engineering consumes 180,000
Tool kindred consumes 900,000
Place kindred consumes 192,000
Total $1,632,000
The Genre assembly has unwrittenly compensationd its emanations at 120 per cent of manufacturing consume .
Recently the Genre assembly has fix it has had inaptitude selling its advanced emanation with a emulator entering the negotiate from overseas and making material sales at a compensation considerably below Genre’s compensation restraint the Advanced emanation .
The CEO of Genre ,Jane Monk, cannot interpret how this could be and has asked you to summon the substance.You initiate to perpend some of the axioms and run to inhibit quenched a strange appropinquation to arrange consumes designated Activity Based Consumeing .You entertain managed to authenticate the subjoined
information:
Activity Consume Pool Consume Driver Budgeted smooth of Consume Driver
Set up consumes Number of origination runs 80 runs
Engineering consumes Engineering changes 200 engineering changes
Tool kindred consumes Tool hours 18,000 hours
Place kindred consumes Floor immeasurableness in sq ft 3,840 sq ft
In specification the subjoined instruction has been resolute :
–The Basic emanation is concocted in origination runs of 50 parts each and the Advanced emanation
is concocted in 250 part batches
–75% of the engineering changes are used by the Basic emanation with the retaining 25% used by the
Advanced emanation
–Each Basic emanation requires 4 tool hours restraintasmuch-as each Advanced emanation requires 1 tool
hour
–The place has 3,840 balance feet of floor immeasurableness with 80% of it used in the origination of the Basic
product
Required:
Using the instruction over and your acquirements of Activity Based Consumeing you are required to collect answers to the subjoined :
(a) Summon the preresolute aloft reprove that would be used below unwritten aloft
costing
(b) Summon the emanation consume per part restraint the Basic and Advanced emanations below unwritten consumeing
(c) Summon the compensation that would be teeming restraint the Basic and the Advanced emanations below
unwritten consumeing
(d) Summon the consume per Activity restraint each consume pool.
( e) Summon the consume per part restraint Basic and Advanced emanations using Activity Based Consumeing
(f) Based on your calculations with regard to Basic and Advanced emanations observe upon whether
either emanation has been overcosted or belowcosted
(g) Discuss the benefits that can be obtained from using an Activity Based Consumeing regularity and

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