HND-Preparing Financial Forecasts题目
english 2010-05-27 21:17:43 阅读40 评论2 字号：大中小
Outcome(s) covered 1 and 2
Asssment task instructions
Question 1
Jamieson Tech Ltd is a manufacturing company. The following is an extract from their budgeted information for the year after overhead costs have been apportioned to the relevant production department:
Department | Overheads | Labour Hours | Machine Hours |
A | ?240,000 | 中国历史资料60,000 | - |
B | ?280,000 | 90,000 | 14,000 |
| | | |
The following information relates to Overhead costs:
(a) Within each department, Production Overheads are absorbed on the following basis:
Department A — Labour Hour Rate
Department B — Machine Hour Rate
(b) Administration Overheads are 10% of Prime Cost
(c) Selling and Distribution Overheads are 10% of Production Cost
The company has received an order for a job — reference number: 35/TGB. Specific details are as follows:
(i) The job will require two types of Direct Materials –Material V and Material Z – as follows:
100 kg of Material V @ ?8/kg
80 kg of Material Z @ ?12/kg
(ii) The job will require the following Direct Labour:
Department A — 100 hours @ ?6.00 per hour
Department B — 110 hours @封妻荫子是什么意思 ?4.00 per hour
(iii) In Department B, the order will require 80 hours’ machine time
(iv) For this specific job, the company will have to hire a special machine — the cost of this hire is ?400
(v) The company requires a profit margin of 20% on this job
You are required to: Prepare an Operating Statement for the job, using the above in
formation, showing clearly Total Cost, Profit and Selling Price.
Question 2
Jamieson Tech Ltd also manufacture Product ref CPO. Again, the production process for this product utilis Departments A and B. The Operating Statement below outlines the expected costs, profit and lling price of one unit of this product.
Jamieson Tech Ltd |
Operating Statement for one unit of Product CPO: |
Direct Materials ? | | ? |
80 kg of Material T@?8/kg | 旋转木马电视剧640 | |
30 kg of Material Y@?10kg | 300 | |
| | 940 |
Direct Labour | | |
Department A – 60 hrs@?6/hr | 360 | |
Department B – 80 hrs@?4/hr 花木兰是哪个朝代的 | 320 | |
| | 680 |
Prime Cost | | 1620 |
Production Overheads | | |
Department A | 240 | |
Department B | 400 | |
| | 640 |
| | 2260 |
Administration | 162 | |
Selling and Distribution | 226 延迟发货 | |
| | 388 |
Total Cost | | 2648 |
Profit | | 662 |
Selling Price | | 3310 |
| | |
A large and important customer, Ceesay plc, has approached Jamieson Tech Ltd and offered them ?304,000 for 100 units of product CPO.
The management of Jamieson Tech Ltd is considering this special order, especially as tightening market conditions mean that the future lling price of CPO is expected to fall by 10%. However, in order to meet the tight deadlines for this special order they would need to reorgani their usual production process, in particular to access the extra labour required in Department A. They are therefore considering the following options:
小燕子的画法>六年级日记100字 (a) Reject Ceesay’s offer assuming the expected fall in lling price.
(b) Accept the special order, but make up the labour required by temporarily closing Department C (which makes product TUC) and transferring employees from Department C to Department A. This will result in a lost contributio
n of ?10,000 from ceasing to make and ll product TUC. In addition, the temporary closure of Department C will result in its share of Fixed Overheads being re-allocated to the
other departments. This will increa the Departmental Overhead Absorption Rates and will mean that, for this special order, Department A will incur additional Fixed Overheads of ?2,000 and Department B will incur additional Fixed Overheads of ?1,000.
混血人 (c) Accept the special order, but utili overtime in Department A in order to meet the requirements of this job (this would avoid the need to clo Department C). This would mean that the direct labour for this order in Department A would be charged at time-and-a-half.
In addition, if the company went ahead with options (b) or (c) above, and accepted
the special order from Ceesay, their direct material suppliers would give them an additional trade discount of 20%.
You are required to:
(i) Produce a Marginal Cost Statement, using the above information, analysing the three alternative cours of action. The statement should show clearly the effect of changing costs/and or revenue levels on Contribution and Profit. Assume all Overhead Costs are Fixed Costs.
(ii) Produce a short report to the management of Jamieson Tech Ltd, in which you recommend and justify an appropriate cour of action.
答案
Asssment task 1
Outcome(s) covered 1 and 2
Suggested solution and making an asssment decision
The standard required for a pass should be bad on the principal criteria:
