### What will the production budget show in costs

Assignment Help Managerial Accounting
##### Reference no: EM131442803

Assignment: Accounting Practices for Managers

Q1-1: What is Zero based budgeting?

Q1-2: A company's annual sales budget is for 120,000 units, spread equally through the year. It needs to have one and three quarter's month stock at the end of each month. If opening stock is 12,000 units, what are the number of units to be produced in the first month of the budget year?

Q1-3: The standard costs for a manufacturing business are £12 per unit for direct materials, £8 per unit for direct labour and £5 per unit for manufacturing overhead. The sales projection is for 5,000 units, 3,500 units need to be in stock at the end of the period and 1,500 units are in stock at the beginning of the period. What will the production budget show in costs for that period?

Q1-4: Receivable increase by £15,000 and payables increase by £11,000. What is the effect on cash flow from the Statement of Cash Flow from these two items?

Q1-5: Randy Airplanes Ltd is a privately owned business. It has budgeted for profits (after deducting depreciation of £41,000) of £150,000. Debtors are expected to increase by £20,000, inventory is planned to increase by £5,000 and creditors should increase by £8,000. Capital expenditure is planned of £50,000, income tax of £35,000 has to be paid and loan repayments are due totaling £25,000. What is the forecast cash position of Randy's at the end of the budget year, assuming a current bank overdraft of £15,000?

Q2-1: What are a flexible, incremental, and activity-based budget? Please explain each.

Q2-2: A company has budgeted for materials of £170,000 but the actual costs are £164,000. The company has also budgeted for labour of £130,000 with actual costs being £133,000. What is the expense variance and is it favorable or adverse?

Q2-3a: How do increases/decreases in costs and/or prices effect each of the variances in standard costing?

Q2-3b: How do increases/decreases in production labor effect each of the variances in standard costing?

Q3-1: What is the difference between Kaizen costing, target costing, and life cycle costing?

Q3-2: Trans PLC estimates that a new product will sell in sufficient quantities to justify its manufacture at a selling price of £175. The company needs to invest £5 million to produce a quantity of 10,000 of these new products per year and requires a return on that investment of 12% per annum. The current prediction is that the product will cost £140 to manufacture. How should Trans reengineer its costs to achieve the target selling price and target rate of return?

Q3-3: SkinTan's top five customers generate sales revenue of £950,000 per annum. Each generates a different gross margin as a consequence of price negotiations that have been carried out over several years. Because of their location, each customer incurs different distribution expenses. Sales commissions are paid at the rate of 6% on all sales. Fixed costs are customer specific, covering salaries of sales and office staff who service each customer. The following table shows the information for each of the top customers for the previous year.

 Sales 250,000 250,000 200,000 150,000 100,000 Gross margin % 30% 25% 21% 37% 39% Distribution expenses 30,000 14,000 25,000 12,000 6,000 Fixed costs 30,000 25,000 16,000 15,000 10,000

Carry out a customer profitability analysis and make recommendations in relation to any future strategies SkinTan should take in relation to its top customers.

#### Perform a five-year financial analysis

Required: Assume you are the company's chief financial officer. Perform a five-year financial analysis and make a recommendation whether to close the Owlseye plant on this b

#### Management accounting system in walmart

Analyze the Walmart's accounting and finance practices. This must be a formal business report which provides both specific processes and strategies involving budgeting, cost

#### Friden company has budgeted sales and production

The Company has 20,000 units of product on hand at April 1. A minimum of 20% of the next month's sales needs in units must be on hand at the end of each month. July sales are

#### What is the minimum price in the long term

ACC202- Parker is trying to enter a foreign market. What is the minimum price it could enter this market in the short term? What is the minimum price in the long term?

#### What would the equilibrium price and quantity

What would the equilibrium price and quantity be in a competitive industry? What would the social gain be if this monopolist were forced to produce and price at the competitiv

#### Entries for uncollectible accounts

Journalize the transactions in the accounts of Pro Medical Co., a medical equipment company that uses the direct write-off method of accounting for uncollectible receivables

#### Computing contribution margin-break even point

Determine the contribution margin for this practice. Determine the accounting break even point in the terms of number of Enrollees. Determine the economic break even point in

#### Determine the budgeted manufacturing overhead rate

Prepare a production cost worksheet if spoilage is recognized and the weighted-average method is used - determine the budgeted manufacturing overhead rate for each department.