Accounting Help The Managers & Case Study Assignment Help

ACC00724 (Accounting for Managers), S2, 2015

Assignment 2 (30 MARKS)

QUESTION 1 (5 MARKS) (200 words)

What function does “feedback” play in the work of the manager and how does accounting help the managers in this regard? Explain using examples to support your discussion.

QUESTION 2 (5 MARKS) (200 words)

Is it possible for costs such as salaries or depreciation to end up as assets on the balance sheet? Explain using examples to support your statements.

QUESTION 3 (5 MARKS) (200 words)

XYZ Company has high fixed expenses and is presently operating somewhat above the break-even point. From this point on, will percentage increases in net income tend to be greater than, about equal to, or less than percentage increase in total sales? Why? Explain.


Estimated or budgeted cost and operating data for three companies for 2015 are given below:

Company X                         Company Y                Company Z

Units to be produced                                                10,000                                                 8,000                12,000

Machine- hours                                                         50,000                                               10,000                6,000

Direct labour- hours                                                 12,000                                               16,000                36,000

Direct labour cost                                                      $48,000                                          $64,000                $150,000

Factory overhead cost                                              150,000                                            40,000                60,000

Predetermined overhead rates are calculated on the following bases in the three companies:

Overhead rate based on

Company X                                                                 Machine-hours

Company Y                                                                 Direct labour-hours

Company Z                                                                 Direct labour cost


  1. Calculate the predetermined overhead rate to be used in each company during 2015.
  2. Assume that three jobs are worked on during 2015 in company X. Machine-hours recorded by jobs are: job 23, 21,000 hours; job 29, 16,000 hours; and job 31, 11,000 hours. How much overhead will the company apply to work in process? If actual overhead costs total $149,000 for 2015, will overhead be     over- or under-applied? By how much?


Tony’s Textile Company sells shirts for men and boys. The average selling price and variable cost for each product are as follows:

Men’s                                                    Boys’

Selling Price           $28.80                Selling Price           $24.00

Variable Cost         $20.40                Variable Cost         $16.80

Fixed costs are $38,400.


  1. What is the breakeven point in units for each type of shirt, assuming the sales mix is 2:1 in favor ofmen’s shirts?
  2. What is the operating income, assuming the sales mix is 2:1 in favor of men’s shirts, and salestotal 9,000 shirts?


The Wilson River Company uses a job order cost system.

The table below provides selected data on the three jobs worked on during the company’s first month of operations:

Job 101           Job 102           Job 103

Units of product in the job                                            2,000               1,800               1,500

Direct labor hours worked                                             1,200               1,000                  600

Direct material cost                                                        3,200               3,980               1,200

Direct labor cost                                                             6,000               5,000               3,000

Actual overhead costs of $5,880 were incurred during the month. Manufacturing overhead is

appliedto production on the basis of direct labor-hours at a predetermined rate of $2 per hour.

Jobs 101 and 102 were completed during the month, job 103 was not completed.


  1. Calculate the amount of manufacturing overhead that would have been charged to each job

during the month.

  1. Calculate the unit cost of jobs 101 and 102
  2. What is the balance of Work-in-Process account at the end of the month?

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