ACCT5002 - Managerial Accounting

The attached files are the four questions to be solved in excel.

Thanks to someone who can solve them.

Regards.

ACCT5002 - Managerial Accounting Your individual assignment submission must be typed in Excel and uploaded (one file only) to the assignment dropbox by the due date and time. One worksheet (tab) for each question labelled properly. Audit trails (show your work at least once) required for work to receive marks. Formatting, organization, and clarity will be evaluated. Question 1 (30%) A manufacturing oorporation has the following financial information for the year: Inventory Balances: Beginning Ending Work in Progress $ 90,000 $ 80,000 Finished Goods $ 77.000 5 67.000 Flaw Materials $ 10.000 $ 10.000 During the year, the budgeted and actual costs were as follows: Note Budget Actual Raw Materials 1 310,000 290,000 Labour 2 540.000 520.000 Depreciation Factory Equipment 72.000 72.000 Depreciation Office Equipment 24,000 24,000 Building Rent 3 100.000 100.000 Maintenance Factory Equipment 60.000 40.000 Utilities Electrical 4 200,000 180,000 Utilities - Gas 5 100.000 90.000 Utilities - Telecom 6 20.000 22.000 Sales Commissions 40,000 30,000 Advertising 30,000 20,000 Shipping 7 20,000 16,000 Sales for the year were $1 ,500,000 Note 1 Raw material For both budget and actual materials: 90% of raw materials are traced directly to specific jobs and remaining 10% of raw materials are used throughout the production process and not traced. $290,000 in materials purchased in the year. Note 2 Labour Budget: Direct Labour $300,000 + Factory Salaries $80,000 + Head Office Salaries $160,000 = $540,000 Actual: Direct Labour $270,000 + Factory Salaries $85,000 + Head Office Salaries $163,000 = $518,000 Note 3 Building Ftent The building is shared between the factory and the administrative office. 68% of the building is related to the factory, and the remaining 32% is related to the administrative office. Note 4 Utilities Electrical 90% of these costs are related to the factory. and 10% of these costs are related to the administrative office. Note 5 Utilities - Gas All of the Gas is used to heat production equipment, Note 6 Utilities - Telecom All of the Telecom costs are for sales people. Note 7 Shigg g 60% of the shipping costs are to bring raw materials to the plant. The other 40% of shipping costs are to ship finished goods to customers. (For simplicity, assume that all of the inrooming shipping costs are indirect costs and are therefore allocated to overhead.) Note 8 Overhead The manufacturer uses Normal Costing. Overhead is allocated based on Direct Labour costs. Any under/over applied overhead is allocated to Cost of Goods Sold. Required (show all of your work): A. Calculate Cost of Goods Manufactured B. Calculate Cost of Goods Sold and an income statement C. Provide a professional assessment and interpretation (reasonable assumptions allowed) Question 2 (25%) Mojo Co. is considering three regions for the manufacturing site of its new product: Indonesia, Mexico, and Canada. The product will be sold to retail outlets in Canada at $47.50 per unit. These retail outlets add their own markup when selling to final customers. The three countries differ in their fixed costs and variable costs per product. Annual Fixed Variable Variable Costs Manufacturing Marketing Costs per Unit and Distribution Costs per Unit Indonesia $6,400,000 $52 $12.80 $4,400,000 $9.50 $21.80 $10,200,000 $19.30 Required (show all of your work): A. Compute the breakeven point of Mojo in both (a) units sold and (b) revenues for each of the three countries considered. B. If Mojo expects to sell 1,350,000 units this year, what is the budgeted operating income for each of the three countries considered? C. What level of sales (in units) would be required to produce the same operating income in Mexico and in Canada? What would be the operating income in Indonesia at that volume of sales? D. What is your decision-making interpretation for each? Question 3 (20%} Given the following information: Deluxe Homes is a residential Home Builder. Based on their current production of 300 homes per year, their costs per unit are: (in $'000) Direct labour $ 20 Direct materials 200 Variable overhead 30 Fixed overhead 40 Variable selling costs 10 Fixed selling costs 10 Total cost per unit $310 Required (show all of your work): A. What is the cost per unit if production is increased to 400 homes per year, and there is an increase of $3.50 million in total fixed costs? B. What is the cost per unit if production is decreased to 270 homes per year, and there is a decrease of $2.04 million in total fixed costs? C. What is your decision-making interpretation for each? Question 4 (25%) Totara Inc. specializes in lowvolume production orders. The three sales representative each receive a base salary plus a bonus based on 20% of the actual profit (gross margin) of each order they sell. The bonus used to be 5% of the revenues for each order sold. Actual profit in the revised system was defined as actual revenue minus actual manufacturing cost. Totara uses a three-part classification of manufacturing costs direct materials, direct manufacturing labour, and indirect manufacturing costs. Indirect manufacturing costs are determined as 200% of actual direct manufacturing labour cost. The sales manager receives a report on the XYZ job and is disappointed with its low profit. The three sales representatives share details of their most recent jobs. Customer XYZ Sale Rep #3 Revenues $580 Direct materials $324 Direct manuf. labour $48 $120 $72 Indirect manufacturing $96 $240 $144 Direct labour-hours 2 5 2 The sale representatives ask the manufacturing manager to explain the different labour costs charged on the WAT and XYZ jobs, given both used two direct labour-hours. The answer, the XYZ, not a rush job, was done in overtime and the actual rate ($36) was 50% higher than the $24 per hour straight-time rate. In contrast, the WAT job was a \"rush" order to be done by noon the day after receiving the order. The \"actual cost\" charged to the XYZ job was the $24 per hour straight-time rate. Required (show all of your work): A. Using both actual straight-time and overtime rates paid for direct labour, what is the actual profit Totara would report on each of the three jobs? B. Assume that Totara charges $24 straight-time direct labour rate for each job (and the indirect-manufacturing rate of 200% includes an overtime premium). What would be the revised profit they would report for each of the three jobs? Comment on any differences from requirement 1. C. Discuss the pros and cons of charging the XYZ job the $36 labour rate per hour. D. Why might Totara adopt the 20% profit incentive instead of the prior 5% of revenue incentive? How might DMI define profit to reduce possible disagreements with its sales representatives