You are required to finish each of these questions, total 40 marks. Please give the solutions in detail, show calculations and submit the solutions to Moodle using a single file, it can be Excel format, Word format or PDF format, no requirement on word limits, if use any references, please refer to Harvard style.
Question 1: c(15 Marks) You are the financial controller of a large manufacturing organization and intend to approach the human resources (HR) manager seeking to create two new positions: a financial accountant and a management accountant. Required: 1 Prepare a briefing document for the HR manager which explains the differences between these two roles. 2 Formulate (and answer) the five likely questions that you anticipate the HR manager will ask you about these two positions when you meet.
Question 2: Product cost classification: manufacturer (15 Marks) The following cost data for the current year relate to Heartstrings Pty Ltd, a greetings card manufacturer: Service department costs1 $ 50 000 Direct labour: wages 242 500 Direct labour: on-costs 47 500 Indirect labour: on-costs 15 000 On-costs for production supervisor 4 500 Administrative costs 75 000 Rental of office space for sales personnel2 7 500 Sales commissions 2 500 Product promotion costs 5 000 Direct material 1 050 000 Advertising expense 49 500 Depreciation on factory building 57 500 Cost of finished goods inventory at year end 57 500 Indirect labour: wages 70 000 Production supervisor's salary 22 500 Total overtime premiums paid 27 500 Cost of idle time: production employees3 20 000
Required: Calculate each of the following costs for the year: 1 Total prime costs. 2 Total manufacturing overhead costs. 3 Total conversion costs. 4 Total product costs (for external reporting purposes). 5 Total period costs. Question 3: Cost behavior; engineered cost; committed and discretionary costs: manufacturer (10 Marks) HappyDaze T-shirts manufactures and prints customised designs on T-shirts. Below is a list of some of their major costs. (a) Cost of daily radio advertising on the local community radio station. (b) Cost of the fabric used to make the T-shirts. (c) Cost of the ink used in the designs. (d) Salary of the managing director. (e) Wages of the production employees who sew and print the T-shirts. (f) Cost of movie tickets provided for the Employee of the Month award each month. (g) Depreciation of the sewing machines, calculated on a units of production basis. (h) Cost of electricity used in the factory building. (i) Rent of the building. (j) Wages of the staff who package the T-shirts. (k) Cost of sewing machine maintenance. (l) Cost of the new advertising sign at the front of the factory. (m) Cost of the company car used by the managing director. Required: For each cost: 1 Indicate whether it is fixed or variable. 2 If the cost is variable, indicate whether it is an engineered cost. Explain why. 3 If the cost is fixed, indicate whether it is committed or discretionary. Explain why.
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