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Coursework task Provision. Last Modified: 16 July es Mailings Review View Help EL - A - E 1 l Normal * No Spac... Heading 1

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Coursework task Provision. Last Modified: 16 July es Mailings Review View Help EL - A - E 1 l Normal * No Spac... Heading 1 Heading Paragraph Styles Case study: Life Symphony Enterprises (LSE) produces health and beauty products with manufacturing and distribution facilities all over the UK. The company currently employs 1,000 employees with an annual turnover of 30m. Sally Mason is the Group Management Accountant of the firm and her primary role includes supporting other staff working in various divisions in making decisions on cost management, divisional performance evaluation and operational priorities. This week, she has received several queries from various offices. You, as a promising intem, has been appointed to assist her in various investigations. In your interview for this position, you had demonstrated your knowledge in various management accounting issues, for instance, cost classifications, behavioural analysis, cost reporting under marginal and variable costing, traditional costing system. Activity-based costing system and variance analysis. Sally is really looking forward to working with you and on your nith day in the job, she has handed you email trails, notes and conversation with her colleagues You have arranged all materials in order and found the following: 1) On 10th February, 2020 John Beecroft from the group's Hull Division sent her an email asking for some clarification on cost calculation. The division estimates overhead costs as 12 per machine hour. John observed that in the last few months, the estimated overhead costs could not predict the product cost well John sent the following 8 occurrences as evidence Machine hours Actual Overhead costs (E) 1,000 10 700 1,500 15,700 13,200 Ework task_Provision Last Modified: 16 July Mailings Review View Help po 2U EEE 1 - l 11 Normal 11 No Spac.. Heading 1 Heading 2 A Paragraph Styles 1) On 10 February, 2020 John Beecroft from the group's Hull Division sent her an email asking for some clarification on cost calculation. The division estimates overhead costs as 12 per machine hour. John observed that in the last few months, the estimated overhead costs could not predict the product cost well. John sent the following 8 Occurrences as evidence Machine hours Actual Overhead costs () 1.000 10.700 1,500 15,700 1.250 13,200 2.100 21,700 1,875 19,500 1.680 17 500 2.250 23,200 1.725 17.950 Sally's note suggests that counting overheads as a variable cost probably cause the Inaccurate estimates though she put several interrogative signs (???) suggesting further investigation Write an emaily note on behalf of Sally to John explaining the possible causes of distorted overhead cost per machine hour by exhibiting an application of any management accounting technique that may provide a better result. (10 marks) Coursework task Provision. Last Modified: 16 July es Mailings Review View Help EL - A - E 1 l Normal * No Spac... Heading 1 Heading Paragraph Styles Case study: Life Symphony Enterprises (LSE) produces health and beauty products with manufacturing and distribution facilities all over the UK. The company currently employs 1,000 employees with an annual turnover of 30m. Sally Mason is the Group Management Accountant of the firm and her primary role includes supporting other staff working in various divisions in making decisions on cost management, divisional performance evaluation and operational priorities. This week, she has received several queries from various offices. You, as a promising intem, has been appointed to assist her in various investigations. In your interview for this position, you had demonstrated your knowledge in various management accounting issues, for instance, cost classifications, behavioural analysis, cost reporting under marginal and variable costing, traditional costing system. Activity-based costing system and variance analysis. Sally is really looking forward to working with you and on your nith day in the job, she has handed you email trails, notes and conversation with her colleagues You have arranged all materials in order and found the following: 1) On 10th February, 2020 John Beecroft from the group's Hull Division sent her an email asking for some clarification on cost calculation. The division estimates overhead costs as 12 per machine hour. John observed that in the last few months, the estimated overhead costs could not predict the product cost well John sent the following 8 occurrences as evidence Machine hours Actual Overhead costs (E) 1,000 10 700 1,500 15,700 13,200 Ework task_Provision Last Modified: 16 July Mailings Review View Help po 2U EEE 1 - l 11 Normal 11 No Spac.. Heading 1 Heading 2 A Paragraph Styles 1) On 10 February, 2020 John Beecroft from the group's Hull Division sent her an email asking for some clarification on cost calculation. The division estimates overhead costs as 12 per machine hour. John observed that in the last few months, the estimated overhead costs could not predict the product cost well. John sent the following 8 Occurrences as evidence Machine hours Actual Overhead costs () 1.000 10.700 1,500 15,700 1.250 13,200 2.100 21,700 1,875 19,500 1.680 17 500 2.250 23,200 1.725 17.950 Sally's note suggests that counting overheads as a variable cost probably cause the Inaccurate estimates though she put several interrogative signs (???) suggesting further investigation Write an emaily note on behalf of Sally to John explaining the possible causes of distorted overhead cost per machine hour by exhibiting an application of any management accounting technique that may provide a better result. (10 marks)

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