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$2,000
Fixed 1,800 1,800
Selling and administration:
Variable$ 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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