Question 2

The Uplands Club estimates the annual cost of the following three departments:

Aquatics RM350,000

Court Sports RM120,000

Aerobics RM150,000

In addition, estimated overheads for all three departments related to locker rooms and central administration costs were RM62,000. These costs tend to be proportional to the department costs.

Required:

Determine the total costs of each of the department.

Question 3

Allister, Inc employs a normal costing system. The following information pertains to the year just ended.

total manufacturing costs were RM2,000,000

cost of goods manufactured was RM1,950,000

applied manufacturing overhead was 30% of total manufacturing costs

manufacturing overhead was applied to production at a rate of 80% of direct labour cost

work-in-process inventory on January 1 was 75% of work-in-process on December 31.

Required:

Compute the prime cost for the year

Compute the value of the companys work-in-process inventory on December 31

Question 4:

A company has reported the following costs and expenses for the most recent month:

Direct materials $69,000

Direct labour $35,000

Manufacturing overhead $14,000

Selling expenses $29,000

Administrative expenses $50,000

Required:

Find the product costs, period costs, conversion costs, and prime costs.

Question 5:

You are given the data below:

Data	RM
Cost of motor car	60,000
Trade-in price after five years or 60,000 km is expected to be	15,000
Maintenancesix monthly service costing (fixed)	600
Spares / replacement parts, per 1,000 km (variable)	200
Vehicle license, per annum (fixed)	800
Insurance per annum (fixed)	1,500
Tyre replacements after 19,000 km, four at RM375 each (fixed)
Petrol per litre (variable) Average mileage from one litre is 20 km	2.00

Required:

From the above data, you are required to prepare a schedule to be presented to management showing for the mileage of 5,000, 10,000, 15,000 and 20,000 km per annum:

Total variable cost

Total fixed cost

Total cost

Variable cost per mile

Fixed cost per mile

Total cost per mile

Plot the information given in your answer to (a) above for total variable cost, total fixed cost, total cost and total cost per km

Question 6:

Vulcan Flyovers offer scenic overflight of Mount St. Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the companys operation in July appear below:

Vulcan Flyovers
Operating Data
For the Month Ended July 31
	Actual Results	Flexible Budget	Planning Budget
Flights (q)	48	48	50
Revenue ($320.00q)	$13,850	$15,360	$16,000
Expenses:
Wages and salaries($4,000 + $82.00q)	8.530	7,936	8,100
Fuel ($23.00q)	1,260	1,104	1,150
Airport fees ($650 + $38.00q)	2,350	2,474	2,550
Aircraft depreciation ($7.00q)	360	336	350
Office expenses ($190 + $2.00q)	460	286	290
Total expenses	12,960	12,136	12,440
Net operating income	$890	$3,224	$3,560

The company measures its activity in terms of flight. Customers can buy individual tickets for overflights or hire an entire plan an overflight at a discount.

Required: (a) Prepare a flexible budget performance report for July.

(b) Which of the variance should be of concern of management? Explain.