i need to detailed answers of thequestions inattached file. There are total 8questions

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DEPARTMENT OF ACCOUNTING AND CORPORATE GOVERNANCE Faculty of Business and Economics ACCG200 | Case Study | Session 1, 2017 CASE STUDY PRESENTATION (10%) Case Study Case Study Presentation (10%) Case study presentation 20% Students are required to analyse the case uploaded on ilearn and present their answers in a group presentation in the week 8 tutorial. The duration of the group presentation should be a maximum of 10 minutes. Students are expected to spend approximately twenty hours of analysing the case and preparing for the presentation. At the tutor's discretion, students will be assigned to a group of 3 to 4 students. Each student within the group must participate and deliver the presentation. Students are required to submit their PowerPoint slides (a maximum of 8 slides per group) upon completion of their presentation. The case study presentation will be graded assessing both the students' ability to answer the questions and their presentation skills. Feedback on the case study presentation will be provided to students in the form of a feedback sheet upon the completion of marking. A mark of ZERO will be awarded for absence or non-presentation. There is no make-up or supplementary presentations in this unit. Any group member or group leaving the tutorial early (after they have presented) will be awarded a mark of ZERO. 2 Case Study Case Study Presentation (10%) ACCG200 Case study Product Costing Macquarie Electronics This case highlights the deficiencies of traditional methods of product costing which employ single volume methods of overhead cost allocation. It provides the opportunity to apply, among others, activity based costing (ABC) methods, in order to demonstrate differences in cost and price outcomes. Background Macquarie Electronics has been at the forefront of engine products in Australia since the information technology explosion of the 1970s. From modest premises in the Melbourne suburbs, founder and now Chief Executive, Barry Martin has driven the company to a respected position among leaders in the market, with a reputation for meeting consumer needs. Barry's genius has always been in providing products in anticipation of the market and in bringing those products in ahead of competitors. Costing and pricing have always been much lower on his priorities because new, well-marketed products have always been successful. The management at Macquarie is now worried. The company's bottom line displays a disconcerting downturn for the second successive year - the first time this has happened in a 20 year history. This relatively poor performance is largely attributable to lack of sales revenue stemming from an inexplicable failure to win orders in competitive tenders. The Chief Executive feels that the pricing policies must be wrong and has called for a full investigation of current procedures in order to identify deficiencies. Source: Smith, M. (1995). Strategic Management Accounting: Issues and Cases. Butterworths: Sydney. 3 Case Study Case Study Presentation (10%) Problem: Macquarie Electronics manufactures small engines for both household and commercial use. The business produces three models called Standard, Advanced and Premium, and applies overhead on the basis of direct labour hours. Product costs and annual sales data are as follows: Annual sales Product Costs: Raw material Direct labour Manufacturing overhead Standard 24 000 Advanced 1 000 Premium 12 000 $ 15 $ 30 $ 50 30 (1hr@$30) 150 30 (1hr@$30) 150 $210 $230 15 (0.5@$30) 75 Total product cost $105 Calculation of predetermined overhead rate: Manufacturing overhead budget: $ Maintenance machinery Depreciation machinery Deprecation and Insurance, factory Inspection Purchasing and shipping Material handling Engineering Miscellaneous manufacturing overhead costs Total budgeted manufacturing overhead Predetermined overhead rate: Total Direct labour budget Standard model Advanced model Premium model Total 360 000 1 240 000 360 000 455 000 330 000 500 000 275 000 230 000 3 750 000 Budgeted manufacturing overhead Budgeted direct labour hours = $150 per hour 12 000 1 000 12 000 25 000 hrs For the past 20 years, Macquarie Electronics' pricing policy has been to set a target price for each product equal to 120 percent of the full product cost. However, the business has come under increasing price pressure from other competitors. The CEO of Macquarie Electronics, Barry Martin, was concerned about the business performance and had a chat with the CFO, Annette Clark in the tea room. Barry Martin: Annette, why can't we compete with these other companies? They are selling their standard models for only $105 and their Premium models for $250. Are we really that inefficient? Annette Clark: As I raised this in our last executive meeting, it is due to an outdated costing system. It was apparent that our current system is distorting product costs. I will compile some data to show you what I mean. 4 Case Study Case Study Presentation (10%) Annette gathered the basic information needed to implement an activity-based costing system in the following table. The percentages are the proportion of each activity driver consumed by each product line. Activity pool Depreciation, machinery Maintenance machinery Engineering Inspection Purchasing and shipping Material handling Depreciation and Insurance for factory Miscellaneous manufacturing overhead costs Activity driver Standard Product line Advanced Premium Machine hours 42% 15% 43% Engineering hours 45% 10% 45% Number of material orders 46% 8% 46% Factory space usage 40% 18% 42% Before Annette could report back to Barry. She received a phone call from her friend, Steve Brown, the production manager for the advanced-engine. Steve was upset and he let Annette know it. Steve Brown: Annette, I've gotten wind of your new product cost analysis. There's no way the advanced model costs anywhere near what your numbers say. For years and years, this line has been highly profitable and it's reported product cost was low. Now you're telling me it costs more than twice what we thought. I just don't believe it. Annette Clark: Steve, the advanced engine is really losing money. Steve Brown: My friend, if you report these figures to Barry. He will discontinue the Advanced line. My job is on the line. Annette, is it possible to massage those numbers a little bit? No one will notice... Required: 1. Using the information provided by Annette a) Calculate the product costs using Activity-Based Costing (ABC). b) Discuss the differences in the product costs and projected selling prices under the traditional and activity-based costing approaches. c) What is the impact of using the traditional costing approach on the competition of Macquarie Electronics products? d) Make recommendations for the pricing of the three models. 2. Discuss the ethical issues involved a) Who are the stakeholders? b) Is the production manager, Steve, acting ethically? Which of the principles set out in the Code of Ethics for Professional Accountants have been violated? c) What are Annette's ethical obligations? d) What should Annette do? Critically evaluate each course of action. 5 Case Study Case Study Presentation (10%) ACCG200 Group Presentation Marking Rubrics Category Group-based (15 points) Individual-based (15 points) Scoring Criteria Total Points Information from relevant/appropriate sources is analysed using relevant/appropriate theories, concepts, and/or techniques to develop a clear and comprehensive analysis of the problem. 5 Potential solutions are identified and evaluated with reference to relevant and appropriate contextual factors leading to the recommendation of a feasible and appropriate solution. 5 Length of presentation is within the assigned time limits. 5 Speaker maintains good eye contact with the audience and is appropriately animated (e.g., gestures, moving around, etc.). 5 Speaker uses a clear, audible voice and delivery is poised, controlled, and smooth. 5 Visual aids are well prepared, informative, effective, and not distracting. 5 Total points Score 30 Final marks out of 10% weightings 6