Purpose of Assessment and provide evidence on:
- A good knowledge of Manage Finance within the organisation.
- Access budget/financial plans for the work team.
- Clarify budget/financial plans with relevant personnel within the organisation to ensure that documented outcomes are achievable, accurate and comprehensible.
For this assessment you must complete the following task A, B, C.
The following may be completed in the workplace based on your current role within an organisation using workplace resources and documentation. Or as a simulated workplace project based on a fictitious organisation, or an organisation you're familiar with.
Provide the background to the budgets and financial plans you are responsible for by answering the following:
1. What is the name of your organisation and a describe the type of activities it conducts?
2. What is the name of the team that you manage and a describe the activities the team undertakes?
3. What team budgets or financial plans are you responsible for implementing and monitoring. Examples of budgets/financial plans may include:
- Cash flow projections
- Operational plans
- Short term budgets/plans
- Targets or KPI for production, productivity, wastage, sales, income and expenditure
Then you are to research the following and discuss each one in your own words.
1. Financial probity
2. Bilateral or regional trade agreements
3. International Commercial Terms (INCOTERMS)
4. Goods and Services Tax, Company Tax and PAYG
5. What is a budget?
6. What benefits can a budget provide?
7. What is a contingency plan?
8. When developing cost control measures what do businesses need to ensure?
9. How can businesses ensure a streamlined feedback system?10. What does financial management deal with?
C) Calculation
1. Johnny B Goode, a plant operator, is paid $20 an hour for a normal 40 hours work. Any overtime is paid at time and half. The time card for the week shows that 48 hours were worked. Please do the pay calculation to record the gross pay and overtime.
2. The Following budget has been prepared based on a planned production level of 40,000 units.
| Lighting |
$64,000 |
| Repairs |
$36,000 |
| Cleaning |
$18,000 |
| Payroll tax |
$14,000 |
| Fixed Cost |
|
| Depreciation |
$20,000 |
| Security |
$16,000 |
| Rates |
$5,000 |
| Insurance |
$7,000 |
Required:
a) Prepare flexible budgets for 40,000 units, 45,000units, 50,000 units.
b) Calculate the cost per unit for fixed and variable costs at each output level.
c) What observations can you make about the cost per for fixed and variable costs as output is increasing?
3. The following information is provided for power consumption per operating hour:
| Power cost |
operating hours |
| $41,000 |
4,000 |
| $40,850 |
4,150 |
| $36,800 |
3,300 |
| $38,250 |
3,625 |
| $37,350 |
3,500 |
| $30,900 |
2,850 |
Power cost operating hours
Required:
a) Calculation the variable cost per operating hour for power.
b) What will be the estimated cost at 3500 operating hours?
4. Seppy PTyLtd. Uses standard costing to account for its single product, SV 8, The standard cost specifications is:
Standard cost specification -Product SV8
Direct material 4kg @ & 4.80 per kg $19.20
Direct labour 1.5 hours @$8.80 per hour $13.20
Factory overhead 1.5 hours @ 10.00 per hour $45.00
$47.40
The standard factory overhead application rate was set an annual normal capacity of 144,000
Actual results for the month of April were:
Material purchased 45,000kg at a total cost $216,900
Material Issued 31,250kg
Direct wages paid 11,980 hours@$8.85 per hour
Actual factory overhead incurred $119,500
Actual production 7810 units
Required:
a) Calculate the material price variance calculated on purchase
b) Calculate material efficiency variance
c) Calculate the labour rate and efficiency variance
d) Calculate the spending, overhead efficiency and volume variance