PATRIOT ODUNARO BABATUNDE JIMOH (08038454008)
ASSIGNMENT 1
State the steps needed to be observed whenever marginal costing technique is to be used in making decision.
ASSIGNMENT 2
Kiyesi Nigeria Limited manufactures two products B and T, the selling prices of which are N84 and N72 respectively. Standard cost data are as follows:
Product B Product T
Per Article: N N
Direct Material 10 12
Direct Wages (N4 per hour):
Department 1 8 12
Department 2 4 8
Department 3 12 -
Department 4 - 16
Variable Overhead 2 6
Per annum fixed overhead N50,000
Kiyesi Nigeria Limited operates a 40-hour week for 50 weeks each year.
Currently the employees in each department are:
Department 1 15
Department 2 8
Department 3 9
Department 4 12
You are required to state if one product only were to be made:
(i) Which product would give maximum profit and the problems that you envisage could arise.
(ii) Which product should be made and the amount of profit per annum resulting assuming that product B and T use the same direct material and that there is a shortage of the material with supply limited at current price to maximum of N200,000 per annum.
(iii) Which product should be made and the amount of profit per annum resulting assuming that there is a shortage of persons possessing the skills required in department 1, with the result that the number of employees there cannot be increased.
(iv) How many employees with evidence do we have in Kiyesi Nigeria Limited?
INSTRUCTION: TO BE SUBMITTED ON OR BEFORE THURSDAY OCTOBER 8, 2020 AROUND 3PM
