ACCT212 : Managerial Accounting - Direct Labour and Indirect Labour - Accounting Assignment Help

Assignment Task :

INTRODUCTION 

The purpose of this project is for the students to apply managerial accounting knowledge to the real  business. In Addition, the project is aiming to provide help to the family business in the community.  This project will cover part of Module 1, Module 3, Module 4 and Module 5. 

REQUIREMENT 

1. Form into a group of 5 to 6 students. Provide the names of each group member. 

2. Each group need to find an actual business for one of the productive family in the  community. The business must make and sell at least two different products . 

You need to contact the owner of the business family, ask questions and collect some data that you  need for the project. Think about these questions: - 

a. What are the direct material, direct labor and manufacturing overhead cost involved in making  the two products? 

b. How many units of each product the business normally produce? 

c. How many units of each product the business normally sell?

d. How much is the current selling price that charged by the owner? Use target costing/cost plus  costing to calculate your suggested selling price. 

e. Does the business have workers? How many workers? How much is their salary? Differentiate  between direct labor and indirect labor. 

f. What other cost needed to make the products? Differentiate between manufacturing overhead  and period cost. List down in table format. 

g. Where is the location of the factory or shop? How much does it cost to buy/rent the place? 

h. Does the business provide online sales? How much is the cost of delivering the products to the  customers? 

i. What about the machine, equipment, and other asset? How much will it cost? j. What other cost involve in selling the products? Differentiate between expenses and asset. 

Once you get an idea of what products the business make and sell then complete the following  tasks:- 

Task 1: Prepare the following cost in table form :- 

a. Raw materials used to make one UNIT for EACH product, and the cost per unit . You need to classify the raw material as direct material and indirect material.  One table per product. 

b. Salary of production workers – how many workers does the business have and how  much is the wages per hour, per worker. 

c. List of Manufacturing Overhead cost (include insurance, utilities, depreciation,  maintenance, etc). 

d. List of Selling and administrative cost. 

e. The Cost of purchasing assets (machine, equipment and other asset needed for the  business).

Task 2: Prepare the following budget for both products for two months: 

a. Sales Budget ( per each product). 

b. Production Budget ( per each product). 

c. Direct Material Budget ( per each product). 

d. Direct labor Budget ( per each product). 

e. Manufacturing overhead. 

f. Selling and administration. 

1. Prepare the budgeted income statement for two months. 

2. Compute the sales mix of these product and calculate the breakeven number in units and  dollar. 

3. Calculate the margin of safety ratio.

4. If the business wants to earn net income of SR100,000 how many units of these products need to be sold. (show your works)

INTRODUCTION 

 Blue Star is a store on Instagram that specializes in drawing on stuff such as Book Markers,  Artboard in different sizes, as well as cups. The most characteristic of the store are April Star. The owner of the store is Maram, she is well known for her creatively in drowning. Her account has more than 600 followers. She hopes in the future that her business will spread around the world. 

a) Raw materials used to make one UNIT for EACH product, and the cost per unit. You need to classify the raw material as direct material and indirect material. One table per product: 

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