1. .(a) State five roles of the Management
Accountant.
(b) Accounting can be classified into
Management Accounting, Financial
Accounting
and so on.
Differentiate between Management accounting and
Financial Accounting in
tabular form,
state at least ten factors.
2. Efura Nigeria Limited has provided below its
operating and maintenance costs for the last
four
months:
Months/year Production(Units) Cost (N)
June
2017 12,000 194,000
July
2017 14,000 220,000
August
2017 15,000 222,000
September
2017 16,000 230,000
You are
required to use High and Low Method to calculate:
i.
Variable
cost per unit and the fixed cost for the period.
ii.
Express
the company`s operating and maintenance costs in linear equation form:
Y
= a + bx
iii.
What
is the expected costs for the last three months of 2017 when the planned
activity
level were:
October
2017 17,200
November
2017 25,500
December
2017 37,400
3. Asela
Nigeria Limited has provided below its operating and maintenance costs for the
last
four months:
Months/year Production(Units) Cost (N)
January
2017 14,000 220,000
February
2017 16,000 230,000
March
2017 15,000 222,000
April
2017 12,000 194,000
You are
required to use High and Low Method to calculate:
i.
Variable
cost per unit and the fixed cost for the period.
ii.
Express
the company`s operating and maintenance costs in linear equation form:
Y
= a + bx
iii.
Cost
expected in the month of May 2017 to August 2017 when units to be produced
are expected to be:
May
2017 17,200
June
2017 18,000
July 2017 19,100
August 2017 23,000
4. (a) (a) Write short note on the following:
(i)
Budget Committee
(ii)
Zero Based Budget
(iii)
Flexible Budget
(b) Below
is the budget of maintenance department of Ajepeaiye Nigeria Limited which is currently
working at 80% capacity.
N`000
Variable Costs:
Direct Labour 60,000
Direct Materials 48,000
Other direct expenses 56,000
Mixed Costs:
Indirect labour 30,000
Maintenance 24,000
Other supplies 32,000
Discretionary fixed costs:
Training cost 15,000
Committed fixed costs:
Depreciation 15,000
280,000
In addition to the above information, you are to
note the following:
Indirect labour 60%
fixed
Maintenance Expenses 50% fixed
Other supplies 40%
variable
You are required to prepare a flexible budget at
60%, 70% and 100% capacities.
5. (a)
Enumerate ten stages in decision making process.
(b) List
five merits of Corporate Planning and three demerits of Corporate
Planning.
(c ) Write
short note on:
i.
Planning ii. Control
6. Aseye Nigeria Limited produces and sells Red Soft
Drinks. The standard direct cost per crate is as follows:
Material:
100 litres of concentrated juice at N2.00 per litre.
200 litres of carbonated water at N2.50 per litre
10 labour hours at N9.00 per hour.
The budgeted monthly production and sales is 500
crates and the selling price is N1,000 per crate.
The following details relate to October 2017, when
510 crates of Red Soft Drinks were produced and sold:
N
Sales 506,500
Materials used:
Concentrated juice- 51,600 litres 102,500
Carbonated water- 101,500 litres 258,800
Labour:
5,000 hours cost 45,750
Required:
(a)
Compute
the price and usage variance for each material.
(b)
Calculate
the wage rate and efficiency variances.
(c)
Comment
briefly upon the information revealed by each of the variances you have
computed.
7. The corporate planning manager of Aiyedade
Nigeria Limited is in the process of preparing the 2016 plan for his
organisation, just having obtained the requisite import licence. The following
data have been gathered:
Finished Goods:
|
||||||||
Products
|
Opening Stock
|
Closing Stock
|
Sales
|
|||||
X
|
8,000
|
6,000
|
30,000
|
|||||
Y
|
18,000
|
10,000
|
20,000
|
|||||
Labour Requirement:
|
||||||||
Products
|
Hours per unit
|
Rate per unit
|
||||||
X
|
5
|
3.20
|
||||||
Y
|
3
|
6.00
|
||||||
Materials:
|
||||||||
Usage in production
|
Rate per unit
|
|||||||
Type
|
Price
|
X
|
Y
|
|||||
1
|
3.00
|
3
|
1
|
|||||
2
|
2.00
|
4
|
-
|
|||||
3
|
2.50
|
-
|
6
|
|||||
4
|
4.00
|
5
|
-
|
|||||
5
|
1.00
|
-
|
7
|
|||||
Production overhead is applied at the rate of N3 per direct labour hour.
You are required to prepare:
(a)
Production
budget
(b)
Direct
materials purchase budget
(c)
Direct
labour budget
(d)
The
cost of finished goods
(e)
If
a profit of 1/3 of the selling price is desired, for how much
should each unit be sold?
8. (a) What do you understand by cash budget?
(b)
Enumerate four benefits to be derived from the preparation of detailed
cash
budget.
(c )
Foyegbe Nigeria Limited is operating a system of flexible budgetary
control.
The
budget for the year 2016 is as follows:
Level
of Activity
80% 90% 100%
800Units 900Units 1,000Units
Prime
Cost 16,000 18,000 20,000
Variable Selling Overhead 2,400 2,700 3,000
18,400 20,700 23,000
Selling Variable Selling Overhead:
Distribution 3,600 3,800 4,000
Other
Fixed Overhead 5,000 5,000 5,000
Total
Cost 27,000 29,500 32,000
You are required to present the above to the
management, separating the semi-variable overhead to variable and fixed, and
also include the cost of attaining 120% level of activity. Fixed costs remain
unchanged.
9. . Emioga Nigeria Limited Operate a standard absorption costing
system to control the manufacturing cost of single product. The following
standards have been set.
N/Unit
Direct Materials 2kg @ N6/kg 12
Direct Labour 1 hour @ N7/hr 7
Variable overhead 1 hour@ N9/hr 9
Total production cost 28
The fixed overhead standard cost per unit is based
on a budgeted monthly production of 4,000 units actual results for most recent
month were:
Production 4,300 units
Direct material cost N56,000
for 9,000kgs
Direct labour cost N32,800 for 4,600hrs
Variable overhead N35,000
Only 4,000 hrs were worked
No material inventory held
Required: Calculate the variances as follows:
(i) Direct Material Cost Variance
(ii) Direct
Material Price Variance
(iii) Direct
Material Usage Variance
(iv) Direct
Labour Cost Variance
(v) Direct
Wage Rate Variance
(vi) Direct
Labour Efficiency Variance
(vii) Variable Overhead Cost Variance
10. Brits
Nigeria Limited manufactures local bread, using two chemical pounds Mang and
Dang. The standard materials usage and cost of unit of bread are as follows:
N
Mang 6kg @ N3 per kg 18
Dang 12kg @ N4 per kg 48
66
At particular period, 100 units of bread were
produced from 700kg of Mang and 1,140kg of Dang.
Required:
Calculate the materials usage, mix and yield
variances.
11. Alashela Nigeria Limited manufactures the
following, with the standard labour hours.
Products:
A 20
minutes
B 45
minutes
C 30
minutes
D 25
minutes
The following information were further provides:
Product Budgeted
output (units) Actual output (units)
A 45,000 48,000
B 70,000 62,000
C 53,000 58,000
D 64,000 53,000
Actual hours recorded was 100,000 direct labour
hours.
Required to complete:
(i) Activity ratio (ii)
Efficiency ratio (iii) Capacity
ratio
12. (a) What do you understand by Cost-Volume-Profit
Analysis Technique?
(b) List five
each usefulness and assumptions of Cost-Volume-Profit Analysis
Technique.
(c) The
following information has been summarised from the records of Alajeju
Limited.
Period
1 Period 2
N N
Sales 30,000 38,000
Profit 800 2,300
You are required to calculate using any assumption reasonable thought:
(i)
The
Profit/ Volume Ratio
(ii)
The
Loss when sales are 24,000
(iii)
The
Profit when sales are 60,000
(iv)
The
sales required to earn a profit of N4,000
(v)
The
Break-Even Point
(vi)
The
Margin of safety for period 1 and period 2.
13. (a) Enumerate five each merits and demerits of
the Standard Costing Techniques.
(b) List six needs for Variance Analysis.
(c) For a product, the following data are given by
Foyegbe Nigeria Limited.
Standard details per unit of product:
Direct material 4kgs at N0.75 per kg
Direct labour 2hours at N1.60 per hour
Actual details for given financial period:
Output produced in units 38,000
Direct materials:
Purchases
180,000kgs for N126,000
Issued to production 154,000kgs
Direct labour 78,000hours worked for N136,500.
There was not work-in-progress at the beginning or
end of the period.
As a student of Management and Business Studies, you
are required to calculate the following variances:
(i)
Direct
Material Cost
(ii)
Direct
Material Price based on issue to production.
(iii)
Direct
Material Usage
(iv)
Direct
wage Cost
(v)
Direct
Wage Rate
(vi)
Direct
Labour Efficiency
14. Wise-Up
Communications Limited which manufactures the “Campus” Radio Receiver commenced
trading on June 29th, 2017. The company`s budget for each four week period is
as follows:
N N
Sales (20,000 receivers) 400,000
Manufacturing costs of goods sold:
Variable Cost 240,000
Fixed Overhead 60,000 (300,000)
Gross Profit
100,000
Selling and distribution cost (fixed) (20,000)
Net Profit 80,000
The following date relates to the first two trading
periods:
Period
1 Period 2
Production 24,000 18,000
Sales 18,000 21,000
Required:
Prepare operating statement for each of the two
periods on each of the following bases:
(a)
Where
fixed manufacturing overhead is absorbed into product cost at the budgeted rate
and selling and distribution costs are treated as period costs.
(b)
Where
all fixed costs are treated as period costs. You may assume that the selling
price, fixed costs and unit variable costs for the two periods are in line with
budget.
STUDENTS VISIT:
TRAIN YOUR BRAIN :
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https://britstutors.blogspot.com/2018/10/be-positive.html
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https://britstutors.blogspot.com/2018/10/nice-meeting-you-guys.html
COURSE OUTLINE
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FIRST AND THE BEST
“IN ALLYOUR
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