managerial accounting

Management Accounting Assignment Data

Excellent Supreme Excelsior

Material cost ? 30 81 126

Direct Labor : hours /unit 0 .5 01 01

Production /Sales /unit 20000 1000 20000 Budgeted Overheads : 4410 ,000

Direct Labor Rate ?8 /hour

Calculations for Actual Costing Method

Workings

1 ) Cost of Excellent

Direct Material : 30x 20 ,000 600 ,000 .00

Direct Labor : 0 .5x 8 x20 ,000 80 ,000 .00

Overhead : 4 ,410 ,000x20 ,000 /41 ,000 2 ,151 ,219 .51 2 ) Cost of Supreme

Direct Material : 81x 1000 81 ,000 .00 p

Direct Labor : 1x 8 x 1000 8 ,000 .00

Overhead : 4 ,410 ,000x 1000 /41 ,000 107 ,560 .97 3 ) Cost of Excelsior

Direct Material : 126x 20 ,000 2 ,520 ,000 .00

Direct Labor : 1x 126 x20 ,000 2 ,520 ,000 .00

Overhead : 4 ,410 ,000x 20 ,000 /41 ,000 2 ,151 ,219 .51 Excellent Supreme Excelsior

Cost 2 ,831 ,219 .51 196 ,560 .97 7 ,191 ,219 .51

Sale Price 3 ,397 ,463 .41 235 ,873 .16 8 ,629 ,463 .41

Profit 566 ,243 .90 39 ,312 .19 1 ,438 ,243 .90

Calculations for Activity Based Costing

1 ) Cost of Excellent

Direct Material : 30x 20 ,000 600 ,000 .00

Direct Labor : 0 .5x 8 x20 ,000 80 ,000 .00

Overhead

Machine hours (40 x 680 ,000 .00 ) 272 ,000 .00

Materials (47 x 680 ,000 .00 ) 319 ,600 .00

Space (42 x 680 ,000 .00 ) 285 ,600 .00 877 ,200 .00 2 ) Cost of Supreme

Direct Material : 81x 1000 81 ,000 .00

Direct Labor : 1x 8 x 1000 8 ,000 .00

Overhead

Machine hours (15 x 89 ,000 .00 ) 13 ,350 .00

Materials (6 x 89 ,000 .00 ) 5 ,340 .00

Space (18 x 89 ,000 .00 ) 16 ,020 .00 34 ,710 .00 3 ) Cost of Excelsior

Direct Material : 126x 20 ,000 2 ,520 ,000 .00

Direct Labor : 1x 8 x20 ,000 160 ,000 .00

Overhead

Machine hours (45 x 2 ,680 ,000 .00 ) 1 ,206 ,000 .00

Materials (47 x 2 ,680 ,000 .00 ) 1 ,259 ,600 .00

Space (40 x 2 ,680 ,000 .00 ) 1 ,072 ,000 .00 3 ,537 ,600 .00 Excellent Supreme Excelsior

Cost 1 ,557 ,200 .00 123 ,710 .00 6 ,217 ,600 .00

Sale Price 1 ,868 ,640 .00 148 ,452 .00 7 ,461 ,120 .00

Profit 311 ,440 .00 24 ,742 .00 1 ,243 ,520 .00 The Comparative Analysis Excellent Supreme Excelsior

Cost 2 ,3831 ,219 .51

1 ,557 ,200 .00 196 ,560 .97 123 ,710 .00 7 ,191 ,219 .51 6 ,217 ,600 .00

Sale Price 3 ,397 ,463 .41 1 ,868 ,640 .00 235 ,843 .16 148 ,452 .00 8 ,629 ,463 .41 7 ,461 ,120 .00

Profit 566 ,243 .90 311 ,440 .00 39 ,312 .19 24 ,742 .00 1 ,438 ,243 .90 1 ,243 ,520 .00 B ) Activity Based Costing Method (ABC ) assigned manufacturing overhead cost to products in more logical Manner than the traditional approach It considered the actual Machine hours and resources as the basis of cost allocation...