You are required to finish each of these questions, total 40 marks. Please give the solutions in detail, show calculations and submit the solutions to Moodle using a single file, it can be Excel format, Word format or PDF format, no requirement on word limits, if use any references, please refer to Harvard style.

Question 1: Differences between management accounting and financial accounting

You are the financial controller of a large manufacturing organization and intend to approach the human resources (HR) manager seeking to create two new positions: a financial accountant and a management accountant.

Required:

1 Prepare a briefing document for the HR manager which explains the differences between these two roles.

2 Formulate (and answer) the five likely questions that you anticipate the HR manager will ask you about these two positions when you meet.

Question 2: Product cost classification: manufacturer

The following cost data for the current year relate to Heartstrings Pty Ltd, a greetings card manufacturer:

Service department costs1                              $ 50 000

Direct labour: wages                                         242 500

Direct labour: on-costs                                      47 500

Indirect labour: on-costs                                   15 000

On-costs for production supervisor                   4 500

Administrative costs                          75 000

Rental of office space for sales personnel2 7 500

Sales commissions                                           2 500

Product promotion costs                                   5 000

Direct material                                    1 050 000

Advertising expense                                         49 500

Depreciation on factory building                     57 500

Cost of finished goods inventory at year end57 500

Indirect labour: wages                                      70 000

Production supervisor's salary                        22 500

Total overtime premiums paid                        27 500

Cost of idle time: production employees3     20 000

Required:

Calculate each of the following costs for the year:
1 Total prime costs.
2 Total manufacturing overhead costs.
3 Total conversion costs.
4 Total product costs (for external reporting purposes).
5 Total period costs.

Question 3: Cost behavior; engineered cost; committed and discretionary costs: manufacturer

HappyDaze T-shirts manufactures and prints customised designs on T-shirts. Below is a list of some of their major costs.

(a) Cost of daily radio advertising on the local community radio station.

(b) Cost of the fabric used to make the T-shirts.

(c) Cost of the ink used in the designs.

(d) Salary of the managing director.

(e) Wages of the production employees who sew and print the T-shirts.

(f) Cost of movie tickets provided for the Employee of the Month award each month.

(g) Depreciation of the sewing machines, calculated on a units of production basis.

(h) Cost of electricity used in the factory building.

(i) Rent of the building.

(j) Wages of the staff who package the T-shirts.

(k) Cost of sewing machine maintenance.

(l) Cost of the new advertising sign at the front of the factory.

(m) Cost of the company car used by the managing director.

Required:

For each cost:

1 Indicate whether it is fixed or variable.

2 If the cost is variable, indicate whether it is an engineered cost. Explain why.

3 If the cost is fixed, indicate whether it is committed or discretionary. Explain why.