Management accounting field, Managerial Accounting

INTRODUCTION AND RATIONALE

The purpose of this assignment is to help students further develop a number of the skills and knowledge required and valued by the accountancy profession. The task that students are required to undertake is similar to the tasks required of a professional accountant working within the management accounting field.

Marks will be awarded based on the accuracy and completeness of answers for each section. The assignment must be attempted and completed on an individual basis and submitted by the due date.

PRESENTATION FORMAT

Students should submit a typed response. A faculty specific Assignment Cover Sheet should be completed and attached to each submission. Copies of the Assignment Cover Sheet may be found on Blackboard.

Numerical questions

In the awarding of marks for numerical questions, consideration will be given to:

  • correctness of answers;
  • appropriate formatting and headings;
  • relevant workings;
  • approach taken to solve the problem; and
  • completeness of answers.

The accountant for Scenic Photographic Supply Company has established the following overhead cost pools and activity drivers.

Overhead Cost Pool

Budgeted Overhead Cost

Activity Driver

Machine set-ups

$100,000

Number of setups

Material handling

$50,000

Weight of raw material

Hazardous waste control

$25,000

Weight of hazardous chemicals used

Quality control inspection

$37,500

Number of inspections

Other overhead costs

$100,000

Machine hours

Total

$312,500

 

Overhead Cost Pool

Budgeted Level for Activity Driver

Overhead Rate

Machine set-ups

100

$1,000 per setup

Material handling

50,000 kilos

$1 per kilo

Hazardous waste control

10,000 kilos

$2.50 per kilo

Quality control inspection

1,000

$37.50 per inspection

Other overhead costs

20,000

$5 per machine hour

An order for 1,000 boxes of film development chemicals has the following production requirements:

Machine set-ups

4 Set-ups

Raw material

l0,000 kilos

Hazardous materials

2,000 kilos

Inspections

10 inspections

Machine hours

500 machine hours

Required

 A. Calculate the total overhead that should be assigned to the development chemical order.

B. What is the overhead cost per box of chemicals?

C. Suppose Scenic Photographic Supply Company was to use a single, predetermined overhead rate based on machine hours. Calculate the rate per hour.

D. Using the single plantwide overhead rate based on machine hours, what will be the total overhead assigned and the overhead cost per box of chemicals

Posted Date: 2/23/2013 6:55:06 AM | Location : United States







Related Discussions:- Management accounting field, Assignment Help, Ask Question on Management accounting field, Get Answer, Expert's Help, Management accounting field Discussions

Write discussion on Management accounting field
Your posts are moderated
Related Questions
Transfer Pricing Transfer pricing can contribute directly to the process of departmental performance measurement and indirectly to the measurement of product performance. A

Ask question #1.The annual overhead costs for Mona Claire Holdings which has three production centres and two service centres as follows; Indirect wages and supervision Machine

opening stock 19000 closing stock 21000 sales 200000 gross profit 25% on sales calculate stock turnover ratio

Explain the concepts of costs. A cost accountant is mainly concerned with the following cost concepts. 1. Concept of objectives: it is this concept that gives direction to

No further banks were the sole source of funds for working capital requires of the business sector. At current more finance options are obtainable to a Finance Manager to allow smo

M/s Sunrise Industries estimates its net cash requirement at Rs. 20 million for the subsequent year. Opportunity cost fund is 15 percent per annum of the Companies. The company wil

JIT purchasing On the other hand is a purchasing system in which material purchased are contracted so as that the receipt and usage of materials to the maximum extent possible,

Activity Based costing and Functional Based Costing compare them together in terms of efficiency, advantages, disadvantages and accuracy.

Debt equity ratio Meaning: this ratio establishes a relationship among long term debts and share holders funds. Objective: the objective of computing this ratio is to me

Pricing decision Price may be defined as the exchange of goods or services in terms of money. Without price firm can survive in the society. If money is not there exchange of g