01 Jul Managerial Accouting assignment

Question Description

Use MS WORD or EXCEL or both

Question #1 (20 marks)

E2-43B

E2-44B

Question # 2 (20 marks)

Indirect labour(IDL)\$10,600\$11,500

Indirect materials (IDM) 4,400 5,000

Total (MOH)\$15,000\$16,500

DL(direct labour)\$12,000\$15,000

MOH = a + b*DL cost

Required:

Determine parameters a and b. (6 marks)

If DL cost is\$13,200, how much would be allowed for IDL and IDM, individually?

Hint: Find the linear relationship between MOH and IDM (14 marks)

That is estimate MOH = c + d*IDM

Question #3 (40 marks)

Year 1Year 2

Units produced1,0001,000

Units sold 7001,300

Total sales\$7,000\$13,000

Total costs

Production:

Variable\$2,000\$2,000

Fixed 1,800 1,800

Variable\$ 700\$1,300

Fixed 2,800 2,800

(For Year 1)

Required:

Prepare income statement using variable costing. (8 marks)

Prepare income statement using absorption costing (8 marks)

Reconcile the differences in income. (4 marks)

(For Year 2)

Required:

Prepare income statement using variable costing. (8 marks)

Prepare income statement using absorption costing (8 marks)

Reconcile the differences in income. (4 marks)

Question #4 (20 marks)

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