PATRIOT ODUNARO BABATUNDE JIMOH (08038454008)
"IN ALL YOUR GETTING GET WISDOM".
NOTICE: STUDENTS DON`T COPY YOURSELVES, JUST BE YOURSELF. IT IS WELL WITH OUR SOUL ALLAHUMO KUNFAYAKUN AMIN.
TO WHOM:
* HND 2 ACCOUNTANCY ( FULL TIME)
* HND 2 BUSINESS ADMINISTRATION ( FULL TIME)
ASSIGNMENT
1. 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:
2. (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
3. (a) Below is the budget of maintenance department of
Jejelaye 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.
(b) Write
short note on the following:
(i) Budget Committee
(ii) Zero Based Budget
(iii) Flexible Budget
BEST OF LUCK!
