ACT202: Management Accounting : Solution Essays

Question:

1.Hard Yakka is producer of workwear in Australia. In the recent years they have introduced two innovative products lines.

The first, Hard Yakka Xtreme, is designed to provide maximum safety and comfort for those who work in extreme conditions and features many technological advances. The second, Hard Yakka for Women (Wtreme), is a unique range of clothes with a feminine style and flattering fit that has been designed to multitask.

The company’s simple costing system has two direct cost categories (material and labour) and one indirect cost pool. The simple costing system allocates indirect costs on the basis of machine hours.

Currently David K. Laidlaw the founder of the company is concerned about a decline in the market share for their Hard Yakka Xtreme which usually is in big demand by their customers.

2.Emprior Furniture sells two types of chairs (Flexi and Comfort). Joy Smith is the newly appointed manager of the business who has little knowledge of cost volume profit analysis.

Answer:

Particulars	Xtreme	Wtreme
Units Sold	3200	1800
Selling Price	$ 125.00	$ 200.00
Sales Revenue(units sold x selling price)	$ 4,00,000.00	$ 3,60,000.00
Direct material cost per unit	$ 30.00	$ 45.00
Direct manufacturing labour cost per hour	$ 16.00	$ 16.00
Direct manufacturing labour hours per unit	1.5	2.25
Production runs	40	85
Material Moves	72	168
Machine set ups	45	155
Machine-hours	5500	4500
Number of inspections	250	150

Activity	Activity cost	Activity cost driver
Production Scheduling	$ 95,000.00	Production Runs
Material handling	$ 45,000.00	Material Moves
machine set-up	$ 25,000.00	Machine set-ups
Assembly	$ 60,000.00	Machine hours
Inspection	$ 8,000.00	Number of inspection
Marketing Cost*	$ 22,800.00	Number of units sold
Total Indirect Cost	$ 2,55,800.00
*Marketing Cost =	3% of sales revenue

= $ 22,800.00

Particulars	Xtreme	Wtreme
Units Sold	3200	1800
Selling Price	$ 125.00	$ 200.00
Sales Revenue(units sold x selling price)	$ 4,00,000.00	$ 3,60,000.00
Direct material cost per unit	$ 30.00	$ 45.00
Direct manufacturing labour cost per hour	$ 16.00	$ 16.00
Direct manufacturing labour hours per unit	1.5	2.25
Production runs	40	85
Material Moves	72	168
Machine set ups	45	155
Machine-hours	5500	4500
Number of inspections	250	150

References:

Atkinson, A. A., Kaplan, R. S., Matsumura, E. M. and Young, S. M. 2011, Management Accounting: Information for Decision Making and Strategy Execution, 6^th Edition, Pearson Education.

Horngren, C. T., Datar, S. M. and Rajan, M. V. 2015, Cost Accounting: A Managerial Emphasis, 15th Edition (Global Edition), Pearson Education.

Continue to order Get a quote

Homework help cost calculator

Homework type:

Pages:

600 words

Academic level:

We'll send you the complete homework by September 11, 2018 at 10:52 AM

Total price:

$26

The price is based on these factors:

Academic level

Number of pages

Urgency

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.