Recent Question/Assignment

BUACC2613
Management Accounting 1
Semester 1, 2015
Assignment
Contribution to overall assessment: 25%
Due date: 29 May 2015
• This assignment has two parts:
o Part 1: 30% Technical or Practical
o Part 2: 70% Essay ( 1800 – 2000 word)
• The assessment criteria are on p. 4.
Please note: your work must comply with the University’s General Guide for the Presentation of Academic Work.
• A useful link: http://federation.edu.au/__data/assets/pdf_file/0018/190044/2014-General-Guide-to-Writing-and-Study-Skills.pdf.
This is a group-assignment. Each group needs to have 2 to 3 members in it. Please organise yourselves into groups. Please make sure that names and ID numbers of all members are stated on the cover sheet of your submission.
As this is a group assignment, each member of the group is awarded the same mark. Working in groups has its pros and cons. I am sure that you will hold constructive and energetic group discussions on the issues at hand. In case of any disagreements, you will be able to resolve them in a democratic and rational way. There will be times when you may have to agree to disagree with each other. Invariably different group members bring different skills to a project; it is up to you to make the best of it. I believe one can learn a lot by discussing the issues with one’s colleagues.
If you happen to find your group members are “not pulling their weight” or there are problems with any member’s commitment, then please try to resolve those issues amongst yourselves. Open and honest communication always helps. If you are unable to resolve these issues, you are most welcome to see me and we will try to sort out the problems together. Do this as soon as possible and certainly before the due date.
PART 1:
Archie Ltd manufactures a product called Gizmo. It uses the following direct inputs:
Price Quantity Cost per unit of output
Direct materials $4 per gram 10 grams per unit $40 per unit
Direct manufacturing labour-hours (DMLH) $15 per DMLH 2 DMLH per unit $30 per unit
Archie Ltd has no direct materials inventory. All manufacturing overhead costs are variable costs.
The manufacturing overhead cost is comprised of two activities: set-up and operations. The cost driver for set-up is set-up hours and the cost driver for operations is direct manufacturing labour-hours. Archie Ltd allocates set-up cost at a rate of $80 per set-up hour and each set-up takes two hours.
The company makes Gizmos in batches of 100 units. Operations costs are allocated at a rate of $1.60 per direct manufacturing labour-hour.
Required:
a. Archie Ltd plans to make and sell 20 000 Gizmos in the first quarter of next year. The selling price for the product is $120.Prepare the revenue budget for the first quarter.
b. Prepare the direct material usage budget for the first quarter of next year.
c. Prepare the direct manufacturing labour usage budget for the first quarter of next year.
d. Prepare the manufacturing overhead cost budget for each activity for the first quarter of next year.
e. Compute the budgeted unit cost of a gizmo for the first quarter of next year.
f. Prepare the cost of goods sold budget for the first quarter of next year. Assume Archie Ltd budgets 1000 units of beginning finished goods inventory at a cost of $72 per unit. The company uses the FIFO cost flow assumption for finished goods inventory. It expects to sell all 20 000 Gizmos made in the first quarter.
g. Calculate the budgeted gross margin for the first quarter of next year.
h. The company’s managers want to implement Kaizen Costing. They budget a 1% decrease in materials quantity and direct manufacturing labour-hours and a 3% decrease in set-up time per unit for each subsequent quarter. Calculate the budgeted unit cost and gross margin for quarters two and three. Assume no change in the budgeted output.
i. Refer to the above requirement. How could the reduction in materials and time be accomplished? Are there any problems with this plan?
PART 2:
Please go to your Moodle site and you will find 6 papers on budgeting.
Required:
Write an essay that critically reviews 5 of these papers.
• BUACC2613 - Management Accounting 1
• Semester 1, 2015
• Group Assignment
Names: Student Numbers:
Bases of assessment HD P F
Technical component – accuracy in calculations.
Essay: evidence of research
Essay: a demonstration of critical evaluation of the issues.
Essay format: As per The General Guide for the Presentation of Academic Work
Expression - clarity, style (formal and academic), coherence in writing, grammar, punctuation, spellings and sentence structure.
Expression of your view (and not a catalogue of quotes/ others’ ideas)
A logical flow of argument at both the paragraph level and the overall text level.
Use of supporting arguments.
Use of literature to support the argument.
Referencing procedure (within the text, and at the end of the text).
Appropriately styled and punctuated bibliography.

Overall Presentation – including cover page, line spacing, page numbering.
GRADE:

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