NMENT ON MANAGEMENT ACCOUNTING 1 (ACC 415) FOR PART TIME STUDENTS

 1.  Aiyegbajeje Nigeria Limited manufactures the following, with the standard labour hours.

Products:

A         10 minutes

B         22.5 minutes

C         15 minutes

D         12.5 minutes

The following information were further provides:

Product           Budgeted output (units)         Actual output (units)

A                     45,000                                     48,000

B                     70,000                                     62,000

C                     53,000                                     58,000

D                     64,000                                     53,000

Actual hours recorded was 100,000 direct labour hours.

Required to complete:

(i) Activity ratio          (ii) Efficiency ratio      (iii) Capacity ratio

 

2. The corporate planning manager of Motiriri Limited is in the process of preparing the 2018 plan for his organisation, just having obtained the requisite import licence.

The following data have been gathered:

Finished Goods:
Products		Opening Stock	Closing Stock
K		16,000	12,000
L		36,000	20,000
Products            Sales: k                        60,000 L                        40,000  Labour Requirement:
Products		Hours per unit	Rate per unit
K		5	3.20
L		3	6.00
Materials:
	Usage in production
Type	Price			K		L
1	3.00			3		1
2	2.00			4		-
3	2.50			-		6
4	4.00			5		-
5	1.00			-		7

Production overhead is applied at the rate of N3 per direct labour hour.

You are required to prepare:

a.   Production budget

b.   Direct materials purchase budget

c.   Direct labour budget

d.  The cost of finished goods

e.   If a profit of  1/3  of the selling price is desired, for how much should each unit be sold?

 

3.  Foyegbe Nigeria Limited has provided below its operating and maintenance costs for the last four months:

Months/year                Production (Units)                  Cost (N)

June 2020                    6,000                                       97,000

July 2020                     7,000                                       110,000

August 2020               7,500                                       111,000

September 2020          8,000                                       115,000

You are required to use High and Low Method to calculate:

i. Variable cost per unit and the fixed cost for the period.

ii. Express the company`s operating and maintenance costs in linear equation form:

     Y  = a  +  bx

iii. What is the expected costs for the last three months of 2020 when the planned activity

 level were:

October 2020          17,200

November 2020      25,500

December 2020       37,400

 

 Instructions: To be submitted 10a.m prompt on or before Saturday October 23, 2021 

 

                               ✍️🕋🇳🇬 Patriot Odunaro Babatunde Jimoh💙💚🖤💜