Management accounting field, Managerial Accounting

Assignment Help:

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


Related Discussions:- Management accounting field

Decision making special order, MNO Ltd produces and sells for $25 an office...

MNO Ltd produces and sells for $25 an office machine for which there is a heavy demand which the company is prevented from meeting because of a shortage of skilled labour. The dire

Study guide , The following information pertains to Fairways Driving Range,...

The following information pertains to Fairways Driving Range, Inc.: The company is considering operating a new driving range facility in Sanford, FL. In order to do so, they will

Break even analysis, Break even analysis and target profit, taxes - Patters...

Break even analysis and target profit, taxes - Patterson Parkas Company's sales revenue is $30 per unit, variable costs are $19.50 per unit, and fixed costs are $147,000. a)Compute

Critique of performance measurement, Critique of Performance Measurement ...

Critique of Performance Measurement This section brings together material from preceding data in this lesson in order to provide a critical appraisal of performance measurement

Standerd costing, Ask queThe standard cost of chemical mixture ~ PQ’ is as ...

Ask queThe standard cost of chemical mixture ~ PQ’ is as follows: 40% of material P @ Rs. 400 per kg. 60% of material Q @ Rs. 600 per kg. A standard loss of 10% is normally anticip

Management accounting, Management Accounting An accounting discipline c...

Management Accounting An accounting discipline concerned with the use of financial information. It used to relevant information by managers and other decision makers inside a s

What is performance budgeting, What is performance budgeting The conce...

What is performance budgeting The concept of performance budgeting is used mainly in the government and public sector undertakings. It projects the government activities an

Cost behaviour, How costs behave as the level of activity/volume changes.  ...

How costs behave as the level of activity/volume changes.  Why an understanding of cost behaviour is important ? Types Variable e.g. petrol, direct materials Fixed e.g.

Marginal costing variances, reasons for favourable or adverse variances i....

reasons for favourable or adverse variances i.e. prise usage, mix, yeild

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd