please explain flexi report and balance scorecard for below attached file.IN Q1 VARIABLE EXPENSES ARE FOR PER LAYING HEN PER MONTH EXCEPT DELIVERY EXP

ACT502 Management Accounting, Sem 2, 2017 Assessment 2 50 Marks - Weight 30% DUE DATE 29th of September 2017, 4pm (week 10) The due date and time is noted in the unit information document as well as above. It is your responsibility to ensure you factor in any time difference between Darwin and your location when submitting your assignment. Please upload your answers using the submission point for the assignment on Learnline. Assignments submitted via e-mail will NOT be accepted. There is no need to complete a university cover sheet but DO please include a title page in your document that states your Student Name, Student Number, and your tutor's name. Do not include the actual question in your submitted assignment; only include your answer to the questions. You will be graded on the following criteria: Accuracy o Content o Correct account names etc. o Correct values Presentation o Accounting protocols o Spelling Be very careful that you acknowledge work of others to whom you have drawn information from, a link to the CDU Harvard referencing guide is available on Learnline under student resources. A link is also provided below. Any question found to be plagiarised to any extent will result in a failed assignment. It is understood that correct numerical answers will be identical and show up through safeassign, these will be excluded from plagiarism charges. http://www.cdu.edu.au/library/downloads/pdf/CDUHarvardReferencing.pdf ACT502 Assignment Semester 2, 2017 1 Case Study 1 - 26 marks Montana Farm is a 400-acre farm on the outskirts of San Bernardino Plains, one of the major suppliers free range eggs in the country. A recent breakout of bird flu in the Asia pacific region has affected the industry amid health concerns which has led to a decline with the demand, and it has made the business extremely competitive. To meet the competition, Montana Farm planned in 2017 to advertise more extensively, boost health of laying hens with regular monitoring of veterinary specialists and sourcing grain from trusted suppliers. The budget report for 2017 is presented below. As shown, the static income statement budget for the year is based on an expected 69,000 laying hens producing 568,100 dozen of eggs at $3.95 per dozen. The variable expenses were budgeted as follows: Per laying hen: feed $1.05, nutrition $0.12, supplies $0.06 Per dozen eggs produced: delivery $0.30 All other budgeted expenses were either fixed or mixed expenses. During the year, management decided not to replace a farm hand who quit in March, but it did issue a new advertising brochure and paid for more promotion and advertising. ACT502 Assignment Semester 2, 2017 2 MONTANA FARM Static Budget Income Statement For the Year Ended December 31, 2017 Master Actual Budget Number of laying hens 65,423 69,000 Number of dozen eggs produced Sales Less: Variable expenses Feed Nutrition Supplies Delivery expenses Total variable expenses 510,299 $1,939,138 568,100 $2,243,995 840,031 109,911 62,806 153,090 1,165,838 869,400 99,360 45,540 170,430 1,184,730 773,300 1,059,265 60,000 69,000 62,000 30,000 216,000 60,000 69,000 58,000 25,000 230,000 87,000 120,000 7,000 651,000 122,300 75,900 105,000 5,000 627,900 431,365 Contribution margin Less: Fixed expenses Depreciation Insurance Utilities Repairs and maintenance Salary and wages Delivery expenses Veterinary fees Advertisement Entertainment Total fixed expenses Net income Difference 3,577 U 304,857 U 29,369 10,551 17,266 17,340 18,892 285,965 U 0 0 4,000 5,000 14,000 0 11,100 15,000 2,000 23,100 309,065 Instructions (a) Based on the static budget report: 1. What was the primary cause(s) of the loss in net income? 2. Did management do a good, average, or poor job of controlling expenses? 3. Were management's decisions to stay competitive sound? (b) Prepare a flexible budget report for the year. (c) Based on the flexible budget report, answer the three questions in part a above. (d) What course of action do you recommend for the management of Montana Farm? ACT502 Assignment Semester 2, 2017 F U U F F 3 F F U U F F U U U U U Case Study 2 - 24 marks You are the management accountant at Luxe Fashion Retail Limited (LFR) reporting to the CFO, Mark Newson. LFR is a company listed on the Australian Securities Exchange. LFR has eight stores across Australia and New Zealand, with its flagship store situated in central Melbourne. Its stores stock luxury clothing, footwear and accessories, as well as cosmetics and beauty products for both men and women. LFR's strategy is to be the leading retailer of luxury goods in Australia and New Zealand, providing the best of life's luxuries to customers and a superior return to shareholders as it continues to expand and grow the business. The company has a reputation for stocking the best quality and range of products. Careful consideration is given at a senior management level to the product lines and brands stocked, to ensure that the company's reputation is maintained. The following information is provided to assist you with completing the tasks below. Product range LFR stocks an extensive range of many well-known luxury brands (e.g. Chanel, Gucci and Burberry). It also stocks a number of lines under exclusive agreements with suppliers, ensuring it is the sole local retailer. As a result, approximately 30% of product stocked by LFR is not available anywhere else in Australia or New Zealand. LFR head office employs a highly skilled buyer to manage its stock lines and to determine customer pricing. Although the company does stock a number of locally designed and made product lines, the majority of its stock is imported Purchasing A key area of focus for the board relates to the purchasing of stock. Depending on the nature of the product, lead times between placing a non-cancellable order and receiving the stock can be significant. For example, clothing collections often need to be ordered 12 months in advance. In-store experience Similarly, the in-store experience of customers is considered pivotal for LFR, particularly in light of the increasing popularity of online retailers. Sales staff are trained to provide a personalised shopping experience for each customer. Many of the sales staff have developed close relationships with their customers who they have been serving for many years, and who buy most of their wardrobes from LFR. The ambience of the store, which refreshes its displays regularly, is seen as critical ACT502 Assignment Semester 2, 2017 4 to attracting new customers and retaining existing customers. High-value existing customers are issued with a LFR gold privileges card and their preferences are recorded in a customer database. While in the store, they are served coffee or champagne. All other customers are offered a bronze privileges card, if they do not show a card at time of purchasing. Store manager responsibilities Each of the eight stores is run by an experienced store manager. They are responsible for the store opening hours, store layout and design display, resupply of stock from the central warehouse, staff management and the customer experience while in the store. Instructions For this activity you are required to complete the following tasks: 1. Develop a balanced scorecard for LFR at the organisation level by: a) Identifying at least one LFR's strategic objectives in each of the perspectives (i.e. financial, customer, internal process, and learning and growth). b) Developing a measure in the form of a KPI for each objective identified. Use the template below in completing task 1 2. Now apply the balanced scorecard you have developed at the store level. (You have recognised that the measures appropriate for each store may differ from those developed at the organisational level.) a) Describe why internal perspective measures that are appropriate at an organisational level may not be appropriate at an individual store level. b) Develop two (2) new KPIs which would be appropriate to include in the internal process perspective of a balanced scorecard for the individual stores. c) For each measure included explain how it links back to LFR's strategy. Use the template below in completing task 2 b and c ACT502 Assignment Semester 2, 2017 5