Required: Calculate the following: (i) Revised standard quantity mix. (1 mark) (ii) Standard cost mix. (3 marks) (iii) Standard cost per unit. (1 mark) (iv) Actual cost per unit. (1 Mark) (v) Material price variance (2 marks) (vi) Material cost variance. (2 marks) (vii) Material usage variance (2 marks) (viii) Material yield variance. (2 marks) (ix) Material mix variance. (2 marks) (Total 20 marks) Required: (i) Prepare a profit statement at 50% and 90% capacities for May. 2017. (9 marks) (ii) Calculate. at the respective capacity levels. the: contribution per unit. (2 marks) breakeven point (2 marks) (b) Explain any five steps in the budgeting process. (5 marks) (c) Identify and explain any two steps in the zero-based budgeting process. (2 marks) (Total 20 marks) Question 6 (a) (i) Define the term 'standard cost'. (1 mark) (ii) Explain any three types of standard costs. (3 marks) (b) Punch Juices Ltd produces a standard mixed iuice which is blended from the following standard units: Material Units (kg) Cost per kg (Shs) Water melon 80 3.000 Oranges 120 5.000 Passion fruits 100 10.000 The standard loss of production is 30%. The actual iuice mixture and yield are as follows: Units (kg) Cost per kg (Shs) Water melon 90 2.000 Oranges 110 3.000 Passion fruits 70 8.000 Actual yield 210 Question 3 (a) (b) (C) Distinguish between job analysis and iob evaluation. (2 marks) (i) Define the term iob remuneration. (1 mark) (ii) Identity any two basic remuneration approaches. (2 marks) (iii) For each remuneration approaches in (b) (ii), explain its two demerits. (4 marks) Pondo Ltd currently remunerates its factory werkers on a time basis. The company is considering the introduction of alternative methods of remuneration and the following information relates to four employees for one week: Employee Kenneth Julia Bob Ben Hours worked 15 10 12 15 Rate of pay per hour (Shs) 15.000 15,000 20,000 20,000 Units of output 150 100 100 100 The time allowed for each unit of output is 10 standard minutes and, for purposes of piecework calculations, each minute is valued at Shs 50. Required: Calculate the earnings of each employee. where earnings are based on: (i) piece work rates with earnings guarantee at 80% of pay calculated on an hourly basis. (4 marks) (ii) premium bonus scheme in which bonus (based on 75% of time saved) is added to pay calculated on an hourly basis. (7 marks) (Total 20 marks) Question 2 (a) (b) (C) (d) (i) Identify any two maior users of management accounting information. (2 marks) (ii) For each user identified in (a) (i) explain how management accounting information is useful. (2 marks) Distinguish between the Always Better Control analysis (ABC) and the perpetual inventory system techniques of inventory control. (4 marks) The following data relates to City Abattoirs Ltd. which supplies meat products in Kampala district: Average daily slaughter 120 animals. Usual time to obtain supply 2 weeks. Maximum slaughter in a month 4,000 animals. Economic order quantity 200 animals. Time sufficient for urgent supply 2 days. Required: Determine the: (i) ordering level. (2 marks) (ii) minimum level. (2 marks) (iii) maximum level. (2 marks) (iv) danger level. (2 marks) Footers Ltd sells men's shoes in Luwero town. An extract from the company's records for the years ended 31 December is given below: 2015 2015 Shs '000' Shs '000' Opening stock 140,000 162,500 Closing stock 68.000 75.000 Purchases 600,000 800,000 Required: Calculate the inventory turnover ratios of Footers Ltd for the two years. (4 marks) (Total 20 marks) Question 4 (a) (b) (i) Define the term 'decision making'. (1 mark) (ii) Discuss any six steps in decision making. (6 marks) Titanic Public Accountants (TPA) provide audit services to three clients; Nap Ltd. Max Ltd and Nvex Ltd. The following are extracts from the statement of comprehensive income for the three companies for year ended 30 June, 2017: Nathd Mathd Nvethd Total Shs'000' Shs'000' Shs'000' Shs'000' Sales revenue 19,600 16.000 18.400 54.000 Variable costs 11.400 4.900 12.400 28.700 Direct fixed costs 2.200 1.100 4,000 7,300 Allocated fixed costs 200 300 300 800 TPA allocates fixed costs to clients based on sales. If a client is dropped, total allocated fixed costs are assigned to the remaining clients. All variable costs and direct fixed costs are differential costs. Required: (i) Assess the profitability of the three clients and determine whether TPA is better off dropping the least profitable. (10 marks) (ii) Analyse the effect of dropping the client identified in b (i). (3 marks) (Total 20 marks) Question 5 (a) Profile Plastics Ltd (PPL) manufactures plastic water tanks in Uganda. The company is currently working at 40% capacity and produces 20.000 water tanks per month. During the month of May. 2017 the unit cost per water tank was as follows. Shs Materials 500.000 Labour 300.000 Overheads (60% fixed) 500.000 The selling price is She 1,250,000 per water tank. If the company desires to work at 50% capacity. the selling price falls by 10% accompanied by a 30% fall in the price of materials and at 90% capacity, the selling price falls by 5% accompanied by a 20% fall in the price Of materials