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Lujain Alhendi january online assesment .docx - Module...

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Module code: 4ACCN003WModule title: Fundamentals of Management AccountingFirst name : LujainSurname: AlhendiStudent ID number: W1762659Start of online timed assessment: 10:00AMDate of submission: 8thJan 2021
Section A:Question1:A)totalcutting and turningassembly and finishingfactory rental£75,000.00£52,500.00£22,500.00factory insurance£7,600.00£5,320.00£2,280.00cleaning£8,900.00£6,230.00£2,670.00canteen£11,100.00£3,552.00£7,548.00factory rates£9,500.00£6,650.00£2,850.00electricity£22,500.00£15,200.00£7,300.00machine maintenance£16,464.00£14,112.00£2,352.00machinerydepreciation£30,000.00£25,000.00£5,000.00canteen depreciation£3,500.00£1,120.00£2,380.00supervisors wages£57,936.00£29,716.00£28,220.00other factory costs£23,000.00£16,100.00£6,400.00total£ 265,500.00£175,500.00£89,500.00Notes:Allocate factory rental on the basis of floor area 3500:1500 (7/10 : 3/10).Allocate factory insurance on the basis of floor area 3500:1500 (7/10 : 3/10).Allocate cleaning on the basis of floor area 3500:1500 (7/10 : 3/10).Allocate canteen on the basis of number of employees 8:17 (8/25:17/25).Allocate factory rate on the basis of floor area 3500:1500 (7/10 : 3/10).Allocate electricity on the basis of actual electricity 15200 : 7300 (152/225 : 73/225).Allocate machine maintenance on the basis of number of call outs 18 : 3 (6/7:1/7).Allocate machinery depreciation on the basis of net book value 250000 : 50000.Allocate canteen depreciation on the basis of number of employees 8:17.Allocate supervisors wages on the basis of actual supervisors wages 29716 : 28220.Allocate other factory costs on the basis of floor area 3500:1500 (7/10 : 3/10).Total overheads apportioned to cutting and turning department = £175,500Total overheads apportioned to assembly and finishing department = £89,500.00B)Cutting and turning =: 175,500/22,500 = £7.8 per machine hour.Assembly and finishing : 89,500 / 5,000 = £17.9 per machine hour.( divide the total cost of each department by the number of machine hours ).
c)cutting and turning:7.8*5000units = £390,000Assembly and finishing|:17.9*5000units = £89,500d)cost statement:greenhousegarden seatselling price£ 85.00£ 103.00direct materials£12.00£ 15.00direct labour£20.00£30.00prime cost£ 32.0045.00production overhead (machine hour)(2*7.8+0.5*17.9)= £24.55(2.5*7.8+0.5*17.9)=£28.45total production cost£56.55£73.45Gross profit£28.45£29.55Per greenhouse gross profit= £28.45Per garden seat gross profit = £29.55Gross Profit selling 5,000 unit of greenhouse = £142,250Gross Profit selling 5,000 unit of garden seat = £ 147,750Notes:total production cost = production overhead (machine hour) + prime costprofit = selling price - total production cost
Question3:A)contribution plan:productCASH££££Selling price per unit8401512812700less variable cost per unit:direct materials280560168224direct labour336672140336contribution per unit224280504140limiting factor direct material at£112/kg280/1122.5kg569/1125kg168/1121.5kg224/1122kgcontribution per kg89.65633670ranking2413Workings:Contribution per unit = selling price – (direct materials+ direct labour)contribution per kg = contribution per unit/limiting factor direct material at £112/kgproduction plan:Column1unitquantity of directmaterialcumulativequantity of directmaterialcontributioncontributioncumulatives35,00052,50052,50017,640,00017,640,000c28,00070,000122,5006,272,00023,912,000h38,50077,000199,5005,390,00029,302,000

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