Question
Q1. DCT Corporation are in the manufacturing of soft drinks and produces three products X, Y and Z. During the year 2014, the joint costs
Q1. DCT Corporation are in the manufacturing of soft drinks and produces three products X, Y and Z. During the year 2014, the joint costs of processing the three products were SAR 450,000. The following are the information related with production and sales value:
Product | Units | Sales Value at Split-Off | Separable Costs | Selling Price |
X | 675,000 | SAR 25 per unit | SAR 11.00 per unit | SAR 75 per unit |
Y | 525,000 | SAR 21 per unit | SAR 7.00 per unit | SAR 68 per unit |
Z | 300,000 | SAR 17 per unit | SAR 7.00 per unit | SAR 52 per unit |
Allocate the joint costs to each product using the physical output method.
Answer:
Q2. What are Non-routine Operating Decisions? Examine any one non-routine operating decision with suitable example and discuss what quantitative and qualitative factors should be considered in making such decision?
Answer:
Q3. ABC Ltd. is preparing a budget for 2015. Following are the information related with budget preparation:
Budgeted selling price per unit = $150 per unit
Total fixed costs = $80,000
Variable costs = $50 per unit
Required:
Prepare flexible budget for 1,200, 1,400, 1,600 and 1,800 units.
Answer:
Q4. Explain with suitable examples why the support department costs are allocated to operating department? Briefly explain any one method of such allocation with numerical examples.
Answer:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started