You have been asked by management to prepare a report

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Systems Analysis and Design
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Chapter 7 / Exercise 2
Systems Analysis and Design
Tilley
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10.You have been asked by management to prepare a report on why the personnel budget has a large negative variance. What information would you include in your report?The information should include:a.the cash flow statementb.profit and loss statementc.details and evidence of increased staffing levelsd.details and evidence of wage movements in the organizatione.comparative wage levels in the industryf.details and evidence of direct labour costs including those related to:i.gross salaryii.workers’ compensation insuranceiii.superannuation guarantee chargeiv.annual leavev.long service leavevi.leave loadingvii.sick pay
11.At the commencement of the financial year a business estimated that their overhead would be $720,000 and their direct labour costs would be $1.44 million.At the end of the financial year the actual data reveals that the overhead was $770,000. Direct labour cost was calculated to be $1.54 million.The business uses normal costing and applies overhead on the basis of direct labour cost. The cost of goods sold before making adjustments for any overhead variance is $856,000.Calculate the overhead variance for the year and dispose of the overhead variance by adjusting the costs of goods sold.9Kent Institute Australia - FNSACC507 Provide management accounting information V1.2-08.16
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Systems Analysis and Design
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Chapter 7 / Exercise 2
Systems Analysis and Design
Tilley
Expert Verified
Subject Name: Management Accounting (DAC0215-B) Unit Name: Provide management accounting information (FNSACC507)Estimated overhead720000Direct labour costs1440000Predetermined overhead rate0.5Actual overhead770000Applied overhead720000Overhead variance50000To dispose of the overhead variance:Unadjusted cost of goods sold856000Add: Overhead variance—under-applied50000Adjusted cost of goods sold90600012.A furniture manufacturer predicts that they will sell 12,000 of product A and 8,000 of product B in the next financial period. They prepare their budget accordingly.At the end of the financial period the actual figures are 15,000 for product A and 7,000 for product B. Costs are assigned and the wholesale margin on product A is calculated to be $450 and on product B it is $350.Calculate the predicted and the actual sales mix, the variances that need to be examined and their impact.
Subject Name: Management Accounting (DAC0215-B) Unit Name: Provide management accounting information (FNSACC507)The total sales mix variance is1530000

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