$20 Bonus + 25% OFF
Securing Higher Grades Costing Your Pocket?
Book Your Assignment at The Lowest Price
Now!
Students Who Viewed This Also Studied
HI5017 Managerial Accounting
Task
Question 1
GEM Ltd leases a photocopy machine with terms that include a fixed fee each month plus a charge for each photocopy made. GEM made 5,000 copies and paid a total of $600 in January. In April, they paid $400 for 3,000 copies.
Required:
- a) What is the variable cost per copy if GEM uses the high-low method to analyze costs? (1.5 marks)
- b) How much would GEM Ltd pay if it made 7,500 copies? (Hint: Need to solve for Fixed cost) (2 marks)
Question 2 (11 marks)
Henry’s Kitchens makes two types of sandwich makers: Basic and Deluxe. The company expects to manufacture 70,000 units of Basic, which has a per-unit direct material cost of $10 and a per-unit direct labor cost of $60. It also expects to manufacture 30,000 units of Deluxe, which has a per-unit material cost of $15 and a per-unit direct labor cost of $40. It is estimated that Basic will use 140,000 machine hours and Deluxe will require 60,000 machine hours. Historically, the company has used the traditional overhead allocation method and applied overhead at a rate of $21 per machine hour. It was determined that there were three cost pools, and the overhead for each cost pool is shown:
|
Machine setups |
$ 90 000 |
|
Machine processing |
4 000 000 |
|
Material requisitions |
100 000 |
|
Total overhead |
$ 4 190 000 |
The cost driver for each cost pool and its expected activity is shown:
|
Basic |
Deluxe |
Total |
|
|
Machine setups |
100 |
200 |
300 |
|
Machine hours |
140 000 |
60 000 |
200 000 |
|
Parts requisitions |
80 |
120 |
200 |
Required:
- a) What is the per-unit cost for each product under the traditional overhead allocation method? (3 marks)
- b) What is the per-unit cost for each product under ABC costing? (4 marks)
- c) Briefly comment on the overhead applied per unit under the two overhead allocation methods. i.e. How much was overhead under or overapplied for each product? Further, would you recommend a change to ABC costing for Henry’s Kitchens? Why or why not? (4 marks)
Question 3 (7 marks)
Relevant data from Picta Company’s operating budgets are presented below. The company’s financial year ends on 30 June.
|
Quarter 1 |
Quarter 2 |
|
|
Sales |
$248,470 |
$251,539 |
|
Direct material purchases |
120,295 |
128,832 |
|
Direct labor |
76,553 |
74,289 |
|
Manufacturing overhead |
26,000 |
24,400 |
|
Selling and administration expenses |
33,500 |
33,500 |
|
Depreciation included in selling and administration expenses |
2,000 |
2,500 |
|
Collection from customers |
230,524 |
220,116 |
|
Cash payments for purchases |
114,345 |
118,346 |
Additional data:
Equipment was sold in July for $8,000 and $4,500 in November. Dividends of $5,500 were paid in August. The beginning cash balance was $80,395 and a required minimum cash balance per quarter is $60,000.
The company has a 15% open line of credit for $70 000 with their bank.
Required:
- a) Use this information to prepare a cash budget for the first two quarters of the year. (5 marks)
- bi) Briefly comment on Picta Company’s expected cashflow position in the first two quarters of the year. (2 marks)
Question 5 (11 marks)
Micol & Co. Ltd sells a single product, baby hamper, with a selling price of $150 and variable costs per baby hamper of $100. The company’s monthly fixed expenses are $200,000.
Required:
- a) What is the company’s break-even point in units? (2 marks)
- b) What is the company’s margin of safety in dollars, assume sales is expected to be $800,000? (2 marks)
- c) How many baby hampers will Micol & Co. Ltd need to sell (in sales dollars) in order to realize a target profit of $500,000? (2 marks)
- d) Construct a contribution margin income statement for the first month (in July) that reflects $2,400,000 in sales revenue for Micol & Co. Ltd. (3 marks)
- e) Provide two suggestions to Micol & Co. Ltd on how it can increase profit in subsequent months? (2 marks)
Question 6 (7 marks)
Technology Inc. Ltd sells desktop computer printers for $65 per unit. Unit product costs are:
A special order to purchase 10,000 desktop computer printers has recently been received from another company, and Technology Inc. has the idle capacity to fill the order. The company will incur an additional $1.50 per printer for additional labor costs due to a slight modification the buyer wants to be made to the original product. One-third of the manufacturing overhead costs are fixed and will be incurred no matter how many units are produced. $2,100 of existing fixed administrative costs will be allocated to the order as “part of the cost of doing business”.
Required:
- a) Which of the data above should be ignored in making the special-order decision? For what reason? (2 marks)
- b) Should Technology Inc. Ltd accept the order if the buyer offers $38 per unit for 10,000 desktop computer printers? (3 marks)
- c) What factors must any company consider before accepting a special-order contract? (2 marks)
HI5017 Managerial Accounting
Answer in Detail
Solved by qualified expert
Get Access to This Answer
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.
Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.
Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.
Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.
34 More Pages to Come in This Document. Get access to the complete answer.
Our exclusive quality of online assignment help encourages students to repeat their visit at MyAssignmenthelp.com. We are here to help you with custom essays, assignments and dissertation writing services regardless of any discipline. You will never miss a deadline with us, even if you have reached us late. We are composed of more than 3000 PhD writers eminent in their profession. No matter whether you are a final year student or freshman in college, our dedicated team of writers provides assignment help on any subject on earth. If you wish to get fast, reliable and competent academic assignment help, MyAssignmenthelp.com would be the suitable place for you. We pledge to offer first-rate content at the most reasonable rate ever.
More HI5017 HI5017 Managerial Accounting: Questions & Answers
Accounting and Finance
Vermillion Chemical Company manufactures a red industrial dye. The Vermillion Chemical Company is in the process of preparing its 2018 master budget and you (a group of two trainee management accountants) are presented with the following information in mid-August 2017: 1. The Decem …
View Answer
Accounting for Business Decisions
Part 1 Executive Summary & Introduction
Provide an executive summary which states the problem, how it was investigated, what was found, and what the findings mean. The introduction may include the company’s background relating to business structure, operations, services …
View Answer
Business Management
The purpose of this simulation is to illustrate manufacturing operations, continuous process improvement, and JIT concepts in a way that involves participants not only in learning through participation, but also in decision-making. As a result of playing the game, participants should understan …
View Answer
Accounting
Dave Solomon is 59 years of age and is planning for his retirement. Following a visit to his ï¬nancial adviser in March of the current tax year, Dave wants to contribute funds to his personal superannuation fund before 30 June of the current tax year. He has decided to sell the majority o …
View Answer
Content Removal Request
If you are the original writer of this content and no longer wish to have your work published on Myassignmenthelp.com then please raise the
content removal request.
Choose Our Best Expert to Help You
Hugh Cleave
Masters in Human Resource Management (MMgt, HRM)
752 – Completed Orders
Hire Me
Daniels Farmer
I have acquired my doctorate degree in International Economics from London School of Economics and associated as a part-time lecturer at the same university.
450 – Completed Orders
Hire Me
Bartlett Seymour
I have earned my Ph.D. degree in Economics from Imperial College London.
350 – Completed Orders
Hire Me
Still in Two Minds? The Proof is in Numbers!
33845 Genuine Reviews With a Rating of 4.9/5.
Finance
Home Work: 4 Pages, Deadline:
7 days
The excel formulas were perfect. But the explanation regarding the recommendation was subpar.
User ID: 5***90 United States
Physics
Home Work: 1 Page, Deadline:
2 days
Wonderful as always! Very professional and knowledgeable! I love this experts work and always use them when it comes to Physics.
User ID: 6***06 Atlanta, United States
Healthcare
Assignment: 8 Pages, Deadline:
4 days
Really appreciate this work which help me to get 8.9 out of 10. i would like to express thanks to expert.
User ID: 5***91 Atlanta, Malaysia
Healthcare
Assignment: 12 Pages, Deadline:
7 days
Good work . it was help me lots. i got 6.5 out of 10 which is good score for me.
User ID: 5***91 Atlanta, Malaysia
Assignment
Essay: 5 Pages, Deadline:
3 days
amazing results, received a High grade thank you very much, appreciate the help. Can’t wait to have more assignments so you guys can help me.
User ID: 5***22 Atlanta, Switzerland
Assignment
Essay: 1 Page, Deadline:
3 days
Hello, Thanks for the quick delivery. And the job well done. looking forward to do more.
User ID: 5***06 Atlanta, Canada
Management
Essay: 4 Pages, Deadline:
4 days
Thanks for quick delivery. I will go through it and see what you have done. Yet to be graded
User ID: 5***06 Atlanta, Canada
Statistics
Course Work: 7 Pages, Deadline:
1 day
Great work- Job well done!! Work was completed before schedule.I Would highly recommend this service to others.
User ID: 8***59 Atlanta, United States
It Write Up
Assignment: 10 Pages, Deadline:
11 days
thank you a lot for helping me with the assignment and doing this so on time . you did exactly what i wanted you to do. i am very satisfied .
User ID: 8***43 Atlanta, Netherlands
Programing
Programming: 1 Page, Deadline:
10 days
thanks i had a good grade although it took so many back and forth i hope it wont happen again
User ID: 6***09 Atlanta, Philippines
Healthcare
Assignment: 1 Page, Deadline:
9 hours
Thanks for helping me understand my assignment and also helping me with the write up.
User ID: 8***87 Atlanta, United States
Accounting
Programming: 6.4 Pages, Deadline:
6 days
Excellent Service, Professional and Complete Writing. Will sure contact for further future assignments.
User ID: 8***38 Atlanta, Australia
Finance
Home Work: 2 Pages, Deadline:
3 days
Thankfully, I received one of the best marks awarded for the kind of work given. I am grateful to my assignment help team for their assistance
User ID: 2***85 Atlanta, Ghana
Business Law
Home Work: 1 Page, Deadline:
1 hour
Thank you for your service. Really appreciate that you make my assignment within time
User ID: 7***52 Atlanta, Canada
Management
Assignment: 2 Pages, Deadline:
7 days
Thank you Expert, my professor regraded my work and gave me a good grade this time. but he also mention that going forward i should be more detailed i …
User ID: 2***97 Upper Marlboro, United States
Medical
Programming: 4 Pages, Deadline:
4 days
Really thanks to your efforts. excellent work. It’s well written and well organized and well explained as following instructions. Thanks a lot.
User ID: 6***55 Upper Marlboro, Canada
Marketing
Assignment: 3 Pages, Deadline:
4 days
Well I must say I was delighted by the timelines and great work. The assignment was top notch with excellent results. I got a A+!!!!!
User ID: 8***30 Upper Marlboro, United States
Economics
Home Work: 1 Page, Deadline:
2 days
Great performance by expert which got reflected on the result 9/10. Iam totally satisfied by the performance and result.
User ID: 8***42 Upper Marlboro, Bahrain
Management
Assignment: 6 Pages, Deadline:
1 day
The writer did an amazing job I am pleased with it gave the work to me in time I am happy with it will do more works with them
User ID: 3***40 Chennai, Great Britain
Economics
Programming: 10 Pages, Deadline:
16 days
A legend, a legend, dear expert. The work is excellent and distinct. It contains all the important and accurate details. I thank you for the professio …
User ID: 9***3 Chennai, Kuwait
Finance
Home Work: 4 Pages, Deadline:
7 days
The excel formulas were perfect. But the explanation regarding the recommendation was subpar.
User ID: 5***90 United States
Physics
Home Work: 1 Page, Deadline:
2 days
Wonderful as always! Very professional and knowledgeable! I love this experts work and always use them when it comes to Physics.
User ID: 6***06 Atlanta, United States
Healthcare
Assignment: 8 Pages, Deadline:
4 days
Really appreciate this work which help me to get 8.9 out of 10. i would like to express thanks to expert.
User ID: 5***91 Atlanta, Malaysia
Healthcare
Assignment: 12 Pages, Deadline:
7 days
Good work . it was help me lots. i got 6.5 out of 10 which is good score for me.
User ID: 5***91 Atlanta, Malaysia
Assignment
Essay: 5 Pages, Deadline:
3 days
amazing results, received a High grade thank you very much, appreciate the help. Can’t wait to have more assignments so you guys can help me.
User ID: 5***22 Atlanta, Switzerland
Assignment
Essay: 1 Page, Deadline:
3 days
Hello, Thanks for the quick delivery. And the job well done. looking forward to do more.
User ID: 5***06 Atlanta, Canada
Management
Essay: 4 Pages, Deadline:
4 days
Thanks for quick delivery. I will go through it and see what you have done. Yet to be graded
User ID: 5***06 Atlanta, Canada
Statistics
Course Work: 7 Pages, Deadline:
1 day
Great work- Job well done!! Work was completed before schedule.I Would highly recommend this service to others.
User ID: 8***59 Atlanta, United States
It Write Up
Assignment: 10 Pages, Deadline:
11 days
thank you a lot for helping me with the assignment and doing this so on time . you did exactly what i wanted you to do. i am very satisfied .
User ID: 8***43 Atlanta, Netherlands
Programing
Programming: 1 Page, Deadline:
10 days
thanks i had a good grade although it took so many back and forth i hope it wont happen again
User ID: 6***09 Atlanta, Philippines
Healthcare
Assignment: 1 Page, Deadline:
9 hours
Thanks for helping me understand my assignment and also helping me with the write up.
User ID: 8***87 Atlanta, United States
Accounting
Programming: 6.4 Pages, Deadline:
6 days
Excellent Service, Professional and Complete Writing. Will sure contact for further future assignments.
User ID: 8***38 Atlanta, Australia
Finance
Home Work: 2 Pages, Deadline:
3 days
Thankfully, I received one of the best marks awarded for the kind of work given. I am grateful to my assignment help team for their assistance
User ID: 2***85 Atlanta, Ghana
Business Law
Home Work: 1 Page, Deadline:
1 hour
Thank you for your service. Really appreciate that you make my assignment within time
User ID: 7***52 Atlanta, Canada
Management
Assignment: 2 Pages, Deadline:
7 days
Thank you Expert, my professor regraded my work and gave me a good grade this time. but he also mention that going forward i should be more detailed i …
User ID: 2***97 Upper Marlboro, United States
Medical
Programming: 4 Pages, Deadline:
4 days
Really thanks to your efforts. excellent work. It’s well written and well organized and well explained as following instructions. Thanks a lot.
User ID: 6***55 Upper Marlboro, Canada
Marketing
Assignment: 3 Pages, Deadline:
4 days
Well I must say I was delighted by the timelines and great work. The assignment was top notch with excellent results. I got a A+!!!!!
User ID: 8***30 Upper Marlboro, United States
Economics
Home Work: 1 Page, Deadline:
2 days
Great performance by expert which got reflected on the result 9/10. Iam totally satisfied by the performance and result.
User ID: 8***42 Upper Marlboro, Bahrain
Management
Assignment: 6 Pages, Deadline:
1 day
The writer did an amazing job I am pleased with it gave the work to me in time I am happy with it will do more works with them
User ID: 3***40 Chennai, Great Britain
Economics
Programming: 10 Pages, Deadline:
16 days
A legend, a legend, dear expert. The work is excellent and distinct. It contains all the important and accurate details. I thank you for the professio …
User ID: 9***3 Chennai, Kuwait
Have any Query?
The post HI5017 Managerial Accounting- Margin Income Statement appeared first on study tools.
