Jackson Ltd manufactures two products FRED and MARTHA
T217 ACC200 INTRODUCTION TO MANAGEMENTACCOUNTING ASSIGNMENT 20% Due : Week 10 Jackson Ltd manufactures two products FRED and MARTHA .The firm uses a single plantwide overhead rate based on direct labour hours .Product costing data is as follows: FRED MARTHA Production Quantity 1000 units 5000 units Direct material $40 $60 Direct labour 30(2 hours) 45 ( 3 hours) Manufacturing overhead 96( 2 hours) 144 ( 3 hours) Total cost per unit $166 $249 Manufacturing overhead is currently calculated by using a conventional volume based approach using a predetermined overhead rate based on the number of direct labour hours used to produce the product.The manufacturing overhead budget consists of the following overhead costs: Machine related costs $450,000 Setup and inspection 180,000 Engineering …
Variances – The following data are the actual results for Marvelous Marshmallow Company for October
The following data are the actual results for Marvelous Marshmallow Company for October. Actual output ................................................................................................................................ 9,000 cases Actual variable overhead ................................................................................................................ $405,000 Actual fixed overhead ..................................................................................................................... $122,000 Actual machine time ...................................................................................................................... 40,500 machine hours Standard cost and budget information for Marvelous Marshmallow Company follows: Standard variable-overhead rate .................................................................................... $9.00 per machine hour Standard quantity of machine hours ............................................................................... 4 hours per case of marshmallows Budgeted fixed overhead ............................................................................................... $120,000 per month Budgeted output ........................................................................................................... 10,000 cases per month Required: Use any of the methods explained in the chapter to compute the following variances. Indicate whether each variance is favorable or unfavorable, where appropriate. Variable-overhead spending variance. Variable-overhead efficiency variance. Fixed-overhead budget variance. Fixed-overhead volume variance. Build…
Jazza Ltd produces clocks at its Shenzhen factory. Each clock is put together in the Assembly Department
QUESTION 1 (14 marks) Jazza Ltd produces clocks at its Shenzhen factory. Each clock is put together in the Assembly Department and then tested in the Testing Department. In the Assembly Department, the process-costing system at Jazza Ltd has a single direct cost category (direct materials) and a single indirect cost category (conversion costs). Direct materials are added at the beginning of the process. Conversion costs are added evenly during the process. When the Assembly Department finishes work on each clock, it is immediately transferred to Testing. Jazza Ltd uses the weighted-average method of process costing. Data for the Assembly Department for August 2017 are: Physical Units Direct Materials Conversion costs Work in process, 1 August 6,000 $2,950,000 $925,500 Started during…
Excel – In Australia, permanent employees get given 20 days holiday pay
Background The assignment of a payroll calculator demonstrates Excels ability to automate and present financial calculation information clearly. The ability to build and professionally present a workbook is an important skill. Please note: that where the assignment states that you must use an expression, we mean a function. Please Note: In Australia, permanent employees get given 20 days holiday pay (they get paid at their normal rate while on holiday) and ten days sick pay (they get paid at their normal rate while sick) in each year that they are employed. This means that they get paid even though they are away from work. Superannuation is calculated as a percentage of the Gross pay and taxed at 15%. …
Marshell Ltd produces a subassembly used in the production of forklifts
Marshell Ltd produces a subassembly used in the production of forklifts. The assembly is sold to engine manufacturers and forklift maintenance facilities. The company is completing its fifth year of operations and is preparing to build its master budget for the coming year (2018). The master budget will be based on the following information: The finished goods inventory was 64 000 units at 31 December 2017, each costing $332.12. The desired ending inventory for each month is 80% of the next month’s sales. The data on materials used are as follows: Direct material Per-unit usage Unit cost ($) Metal 20 kg 16 Components 12 components 10 Inventory policy dictates that sufficient materials be on hand at the end of the…
AMCOR Limited has a corporate bond outstanding
Question 1: AMCOR Limited has a corporate bond outstanding with a 7% coupon, semi-annual interest, 15 years to maturity and a face value of $1,000. Similar bonds currently yield 13%. By prior agreement, the company will skip the coupon payments in years 6, 7, and 8, (6 payments in total; the payments at time 6 through to 8.5). These payments will be repaid, without interest, at maturity. What is the corporate bond's value? Question 2: Storico Co. just paid a dividend of $3.85 per share. The company will increase its dividend by 20 percent next year and will then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent dividend growth,…
Capital Budgeting – NPV, PI, Payback, Scenario and Sensitivity
Part A (40 Marks) The management team of Online Jeans Sales have just received a new proposal from one of the firm's marketing managers. The proposal outlines a new investment to create a Custom Finish Laboratory. Through the lab, online customers will be able to select an option to personalise their jeans in a range of finishes. This proposal was made following the completion of market research costing $100,000. The capital cost to establish the Custom Finish Lab will be $1,650,000. This cost will depreciated on the straight-line basis to zero over the 8 year productive life of the lab. It is estimated $100,000 will be recovered at the completion of the project as the salvage value of the lab. In…
The following unadjusted trial balance is available
The following unadjusted trial balance is available for Si’s Knitting Service Ltd.: Si’s Knitting Service Ltd Unadjusted Trial Balance 30th June, 2015 Cash 54,680 Accounts Receivable 193,000 Prepaid Insurance 36,000 Buildings 80,000 Accumulated Depreciation – Buildings 43,200 Machinery 480,000 Accumulated Depreciation – Machinery 225,000 Land 400,000 Accounts Payable 65,760 Notes Payable 100,000 Interest Payable 9,000 Customer deposits 12,000 Bank Loan 110,000 Ordinary Shares 460,000 Retained Earnings 80,940 Revenue 576,340 Cost of goods sold 245,000 Utilities expense 14,660 Maintenance expense 48,300 …
The Playdough company currently produces 760,000 playdough canisters
T217 ACC202 MANAGEMENT ACCOUNTING ASSIGNMENT 20% Due Week 10 The Playdough company currently produces 760,000 playdough canisters per year at its local plant as it sells the product in canisters.The details of the costs in producing the canisters are : Direct materials $ 300,000 Direct labour 12000 hrs at $15 per hr 180,000 Variable overhead $10 per direct labour hr 120,000 Fixed overhead $45 per direct labour hr 540,000 Total cost $ 1,140,000 The Playdough company has received an offer from the Cannister company to supply the cannisters at $1 per canister .The only fixed overhead that would be avoided would be $80,000 of supervisors salaries and $28,000 machinery depreciation .The remaining fixed overhead would continue to be incurred. The Playdough…