Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Cost Accounting Expert

problem 1: A company manufactures a product that has a selling price of Rs 14 and a variable cost of Rs 6 per unit. The company incurs annual fixed costs of Rs 24,400. Annual sales demand is 8,000 units.

New production techniques are under consideration, which would cause a 30% raise in fixed costs and a reduction of Rs 1 in the variable cost per unit. The new production techniques would outcome in a superior product and would allow the sales price to be raised to Rs 15 per unit.

Required:

a) Compute the number of units to be produced and sold annually, if the organization implements the new production techniques and wishes to achieve similar profit as that under the existing technique.

b) Compute the margin of safety as a percentage of the original budgeted annual sales, if the change in production techniques were to occur.

problem 2: Cost-Volume Profit (CVP)/breakeven analysis are a helpful method for managers as it can give simple and quick estimates. It can as well be graphically presented via breakeven charts giving details of the breakeven arithmetic. Breakeven analysis does, though, have number of limitations.

Required: Find out the limitations of the CVP analysis.

problem 3: A company manufactures a single product L. Extracts from the company’s records from the last period are as shown below:

Budgeted results
Raw material        50 kg @ 2.5       125
Direct labor         14 hrs @ 4.75     66.50

Actual results

Production                                        150 units
Direct material purchased                   7,000 kg @ a cost of Rs 18,200
Opening stock direct materials            1,300 kg
Closing stock direct materials              850 kg
Wages paid for 2020 hrs                    9898

Required:

a) Compute the total material variances and the total labor variances.

b) What use can the management of the company make of the variances computed above?

Cost Accounting, Accounting

  • Category:- Cost Accounting
  • Reference No.:- M96724

Have any Question? 


Related Questions in Cost Accounting

Assignmentwhile a form of abc was being used by general

Assignment While a form of ABC was being used by General Electric back in the sixties, widespread use of ABC didn't began in the United States until the late eighties. The early focus of ABC was on developing more reliab ...

Question 1 high-low methodtucson tractor inc has

Question 1 High-low method Tucson Tractor Inc. has accumulated the following data over a six month period   Indirect Labor Hours Indirect Labor Costs January......................... 400 $ 6,000 February................. ...

Accounting1 lisa inc estimates that its employees will

Accounting 1. Lisa Inc. estimates that its employees will utilize 200,000 direct labor hours during the coming year. Total overhead costs are estimated to be $6,700,000 and machine hours are estimated to be 100,000. Actu ...

Questionyou are just from attending a conference on

QUESTION You are just from attending a conference on Activity Based Costing (ABC) and you now wish to put your knowledge to practice by applying the principles of ABC to the four products currently made and sold by your ...

Cost behaviordetermining cost behavior please respond to

Cost Behavior Determining Cost Behavior: Please respond to one of the following: Option 1 Choose a company that interests you. It could be your current employer, a past employer, or even a future employer. Compare and co ...

Accounting assignmentmotorcade company has three service

Accounting Assignment Motorcade Company has three service departments (S1, S2, and S3) and two production departments (P1 and P2). The following data relate to Motorcade's allocation of service department costs:   Budget ...

Assignment1 the following information is from the

Assignment 1. The following information is from the manufacturing budget and the budgeted financial statements of Fabor Fabrication: Compute the budgeted amounts for: a. Purchases of direct materials during the year. b. ...

Scenario-you seemed to develop significant interest with

Scenario- You seemed to develop significant interest with your talk on the future of cost accounting. Your boss has heard about the excellent presentation and you are hopeful that your early retirement will take place. A ...

Question 1pringle company distributes a single product the

Question 1. Pringle Company distributes a single product. The company's sales and expenses for a recent month follow:   Total    Per Unit   Sales $ 300,000   $ 20        Variable expenses   210,000     14          Contri ...

Quiz1 a process cost system would be used for all of the

QUIZ 1 A process cost system would be used for all of the following products except computer chips. chemicals. motion pictures. soft drinks. 2 Differences between a job order cost system and a process cost system include ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen