FNSACC517 Provide Management Accounting Information - Assignment Help
Question 1
Cost and production data for Rob Manufacturing for the 2018 financial year was as follows:
Budgeted variable factory overhead
Budgeted fixed factory overhead
Budgeted production (direct labour hours) Actual variable factory overhead Actual fixed factory overhead
Actual production (direct labour hours) |
$120,000
$180,000 |
$300,000 | |
15,000
$125,300 $164,700 |
|
$290,000 | |
15,500 |
It is organisational policy and procedure that Factory overhead is applied to production using direct labour hours as the cost driver.
Required:
(a) Calculate the factory overhead application rate, and,
(b) Under or over applied overhead.
Question 2
The management accountant of Fed & Co. is developing cost formulas for major overhead activities. The following information has been obtained regarding the behavior of the factory power costs over a number of months:
Month | Machine Hours | Power Cost ($) |
July
August September October November December |
2,500
2,800 2,200 3,000 1,500 2,000 |
10,125
10,840 9,800 11,000 8,750 9,300 |
Required:
(a) Using the high-low method, calculate:
(i) The variable cost per machine hour.
(ii) Total fixed cost per month.
(b) What would be the expected total cost for a month when machines are operating for 2,700 hours?
Question 3
You have been appointed as Management Accountant for Foster Manufacturing. Foster Manufacturing use a job order cost system. The following transactions occurred across various departments throughout the month of June:
- Materials were purchased to the value of $74,800 including 10% GST
- Direct materials issues to jobs in progress were valued at $58,000
- Factory supplies issued were $3,500
- Direct labour charged to jobs of $28,300
- The Foreman’s wages were $15,000
- Foster Manufacturing paid total factory labour payroll of $43,300, including 30% PAYG Liability of $12,990
- Plant & Equipment depreciation was $1,900
- Factory Rent was $3,740 including 10% GST
- Factory Overhead applied to Production was valued at $27,000
- Production completed during the month was $113,000
- Goods sold during the month were:
- Cost Price $113,000
- Selling Price $205,000 (excl 10% GST)
Required:
Using the one ledger system, complete the general journal entries required to record the above transactions. For each journal recorded, please include an appropriate narration (1 line) to explain the entry.
You may embed your Microsoft Excel spreadsheet for Question 3 here, or you may submit it as a separate assessment file. If embedding your file your file, please double click to ensure the file is correctly embedded and remains editable in Microsoft Excel (within the Word document).
Question 4
During the 2018 financial year, Foster Manufacturing recorded the following income and expenditure. GST is not considered in this question.
- Sales Revenue of $2,040,000
- Operating Expenses of $322,000
- Income tax Expense $215,000
Charges to Production were:
- Raw Materials issued to Production of $420,000
- Direct labour charged to Production $340,000
- Overheads charged to Production $272,000
- Actual cost of Overheads $265,000
Additional Information:
- Work in Process at the beginning of the period was $102,000
- Work in Process at the end of the period was $110,000
- Finished Goods at the beginning of the period was $234,000
- Finished Goods at the end of the period was $252,000
Required:
Based on the transactions recorded, within Microsoft Excel prepare a:
- Manufacturing Statement
- Cost of Goods Sold Statement
- Income Statement for the year
You may embed your Microsoft Excel spreadsheet for Question 4 here, or you may submit it as a separate assessment file. If embedding your file your file, please double click to ensure the file is correctly embedded and remains editable in Microsoft Excel (within the Word document).
Question 5
- Discuss the key purposes of a Management Accounting Information system.
- Explain the types of information that such a system will provide for users of the Management Accounting system.
Question 6
- a) Explain the cost behaviour characteristics for each of the following types of costs:
- Fixed
- Variable
- Semi-variable
- b) Compuchairs Pty Ltd specialises in the manufacture of office chairs and stools. Complete the following table to classify the listed manufacturing expenses:
Cost | Classification (Direct materials, Direct labour, Manufacturing overheads or Non-manufacturing cost.) |
Wages for chair assembly staff | Direct Labour |
Rent on factory premises | Manufacturing overheads |
Glue used in chairs | Manufacturing overheads |
Factory Supervisor’s wages | Manufacturing overheads |
Sales commissions | Non-manufacturing Costs |
Upholstery fabric for chairs | Direct Materials |
Factory electricity | Manufacturing overheads |
Depreciation on factory forklift | Manufacturing overheads |
Chair wheels | Direct Materials |
Repairs to factory equipment | Manufacturing Costs |
Freight outwards | Non-manufacturing Costs |
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