Case Study 2 UniTech LLC is specialized in producing high range of mobile, tablet and laptop. These products use the same raw materials, though the quantity differs. Details of quantity required to produce each unit is provided as given below:- Prime Cost Detail:- c)RO 25.00 per unit on direct materials and RO 15.00 per unit on direct labour paid for mobile. c) RO 35.00 per unit on direct materials and RO 25.00 per unit on direct labour paid for tablet. CH) RO 45.00 per unit on component materials and RO 35.00 per unit on direct labour paid for laptop. Production Details: The budgeted production for a year of three products is 10,000 mobile, 5,000 tablets, and 7,000 laptops. Overheads, Activity and Cost Driver Details: - The labour hour per units 0.30 for mobile: 0.45 for tablet; and 1.00 for laptop 6. The procurement costs incurred RO 40,000. Number of purchase order 250 times for mobile; 200 times for tablet: 400 times for laptop The machine set-up costs incurred RO 15,000. No. of machine set-up for mobile 45 times, tablets 55 times and laptop 65 times. (w) The machine running costs incurred RO 32,000. Machine running hours per unit is 0.20 hours for mobile, 0.30 hours for laptop and 0.30 hours for tablet. w After sales services cost incurred 15,000. No. of visits customer made 80 times for mobiles, 60 times for tablets and 40 times for laptops. For many years, the company has been using absorption costing for allocating overheads. The basis of allocation used was the total labor hours. Now company ask you make compare with ABC system to switch over it if it is beneficial. Requirements: 1. Calculate total cost and cost per unit of each product by applying absorption costing. [5 Marks 2. Calculate the total cost and cost per unit of each product by applying ABC system. 15 Marks 3. Calculate the selling price by adding 30% mark up on cost for all products. Also, analyze over costing and under costing for all products. 12.5 +2.5 Marks Case Study 3 Ali LLC Trading Company has produced 25,000 units which is 50% capacity level in the factory. The company has used raw material to make the production worth of RO 35 per unit. The company has incurred direct labour cost at RO 33per unit along with direct expenses RO 28 per unit. The company spent RO 250,000 on fixed expenses in the factory with per unit cost of RO 10. Other factor expenses for the total production of 25,000 units has arrived at RO 11 per unit. Administration expenses were incurred RO 12 per unit out of which fixed expenses belongs to 55%. Company has appointed a salesman for selling the products produced in the company at RO 13 per unit produced out of which 25% belongs to fixed. The company has also incurred distribution expenses of RO 11 per unit out of which 40% are variable. Requirements: The company has approached the you and ask to prepare the flexible budgets for two nore required capacity levels; - 1. 20,000 units and [2.5 Marks) 2. 30,000 units [2.5 Marks) Case Study 5 Idris Company Ltd. is a wholesaler of processed food in the Sultanate of Oman. The following information is furnished by the company in order to assess its performance by using different ratios for the year 2019: - Company started its business with a share capital and debts of RO 3,000,000 consisting of 300,000 shares of RO 8.00 each and bank loans RO 600,000. Company's assets including cash available in the office RO 12,500 and at bank 75,000, building worth RO 165,000, machinery worth RO 75,000. At the end of 2019, the inventory reported worth RO 84,650. Later in the year company purchased furniture worth of RO 21,430. In the year 2019, company has made the sale of RO 2,350,400 by incurring cost of goods sold RO 1,690,250 and operating expenses RO 132,500. The income from other sources reported RO 15,800. Company paid interest of RO 8,400 on bank loans in the year 2019. The total outstanding expenses and accounts payable reported RO 15,300 and RO 144,500 at the end of the year 2019. Company also paid taxes at 15% on net profit. The dividend declared and paid 20% on PAT. The market value of the shares at the end of the year RO 11.200 each. Requirements: - Calculate the following ratios: - 2. Shareholder's Ratios by showing all required calculations and formulas. [4 Marks) b. Profitability Ratios by showing all required calculations and formulas. [4 Marks] c. Current and Quick Ratio by showing all required calculations and formulas. [2 Marks)