Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Cost Accounting Expert

problem 1: A company manufactures a single product. Product is manufactured by processing via two sections, Cost Centre A and Cost Centre B. The company is introducing standard costing.

The standards will be based on the given budgeted information:

157_budgeted information.jpg

Required:

a) Describe the word Cost Centre.

b) Compute the standard cost of one completed product.

c) Compute variances for Cost Centre A in May for each of the given:

  • Material price
  • Material usage
  • Labor efficiency 
  • Labor rate

problem 2: Strouzer Ltd can make 4000 units of its products each year and the budget for the next year is as shown below:

Sales (at Rs 80 per unit)                   Rs 240 000 
Factory costs:
•    Variable                                     Rs 45 per unit 
•    Fixed                                         Rs 22 000
Selling and Distribution costs:
•    Variable                                     Rs 2.90 per unit 
•    Fixed                                         Rs 6 000

Strouzer has been approached by potential customer who is offering to pay Rs 50 per unit for a guaranteed order of 500 units. As far as variable selling and Distribution costs are concerned, they will be zero for this order as the potential customer has approached Strouzer directly.

Required:

a) State whether and why this proposal must be accepted.

b) Suppose a production problem means that production capacity drops to 3000 units for the year, with demand staying the same, at 4000 units per year.

What is your suggestion now?

c) What are the other non-financial factors which require to be considered before taking a decision apart from the financial elements? 

Cost Accounting, Accounting

  • Category:- Cost Accounting
  • Reference No.:- M96733

Have any Question? 


Related Questions in Cost Accounting

Write 500 words that respond to the following

Write 500 words that respond to the following questions: • Discuss what absorption, variables, and throughput costing are. • Determine when each would be used. • Provide an explanation and example of all three.

Final project milestone three guidelinesoverview

Final Project Milestone Three Guidelines Overview: Classifying a company's costs allows for an in-depth analysis of the impact that changes in output have on revenues, costs, and net income or net loss. A cost-volume-pro ...

For your assignment you will apply the fundamental concepts

For your Assignment, you will apply the fundamental concepts of accounting and finance that you are studying to complete several problems indicative to real-world business scenarios and challenges. For this Assignment, t ...

Requirementsdo not use any direct quotes andor cut and

Requirements: Do not use any direct quotes and/or cut and pasted information (i.e. your discussion is to be 100% your thoughts, ideals and insights). A minimum 350 words are required (this is the minimum and totally feel ...

Assignmentdolan products is a small family owned audio

Assignment Dolan Products is a small, family owned audio component manufacturer. Several years ago, the company decided to concentrate on only three models, which were sold under many brand names to electronic retailers ...

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 ...

Assignment discussion-cost accumulation systemwhen

Assignment: Discussion-Cost Accumulation System When companies accumulate costs, they generally use either a job-order or a process costing system. The type of system used often varies based on the type of product or ser ...

Problem 1 master budgetomega inc has developed the

Problem 1: Master Budget Omega, Inc. has developed the following sales forecast for the first six months of the coming year Month Sales (in units) January 30,000 February 50,000 March 70,000 April 80,000 May 60,000 June ...

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................. ...

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 ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

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