MAA262 - Management Accounting - Product Costing - Manufacturing Overhead - Assessment Answer

MAN001 - Management Accounting - Product Costing - Manufacturing Overhead - Assessment Answer 

Task:

Explain alternate product costing using job costing, variable and absorption costing, and activity-based costing systems.

Question 1
Each barbecue is sold for $2.00 and each balloon is sold for $1.00. Throughout the two days, the four friends were able to sell 2,000 barbecues and 1,000 balloons. The four friends did not have to bother about the stock of sausage and bread or balloons. They made an arrangement with a supplier and had to pay only $0.25 per
barbecue served (a slice of bread and a sausage) and $0.03 for each balloon. For the sake of remuneration, the friends have agreed that each one would receive $400 for the two days of\ hard work. Besides the expense of labour and material, the four friends had other expenses for the two days. For the sake of simplicity, two expenses were related to the production process, which was leasing a BBQ ($200) and a balloon pump ($50). The other two expenses were related to sales and administrative tasks, which were leasing a gazebo ($50) and getting a permit for having the stand outside the shopping centre($250).

Required
Based only on information provided in Question 1 of this assignment prepare an income statement for BBQ &
Balloons (suggestion: use Exhibit 7-2 as a model). 

Question 
After crunching all the numbers, the time has come to divide the enterprise’s income between the four friends based on their individual performance. Paul argued he and John should split between themselves the income because they did all the hard work while Ringo and George spent most of their time counting money or talking to people. Ringo replied by arguing that selling balloons was the worst idea ever. John says they should have decided the rules for assessing their individual performance before beginning the enterprise.

Required
a) Explain whether Paul is correct or not in his statement about his friends not contributing to the enterprise. Justify your answer. (8 marks)
b) Explain whether Ringo is correct or not in his statement about selling balloons being a bad idea. Justify your answer. (8 marks)
c) Even if the rules for assessing their individual performance are set before the enterprise begins, explain what is needed for avoiding a subjective performance evaluation.1

Question

Paul is interested in understanding whether the difference between the flexible budget and the actual results in the direct material used (i.e., bread and sausage and balloon) is due to a price variance and/or a quantity variance. The standard prices and quantities are provided in Question 1. The invoices indicate the enterprise bought $450 barbecue serves (bread and sausage) and $25 balloons. Notably, there was some wastage as the records also show the enterprise has used 2,075 barbecues serves (bread and sausage) and 1,050 balloons and there is no stock left.
Required
a) Calculate the material price variances, quantity variances, and total variance for the direct material regarding the BBQ sold.
b) Calculate the material price variances, quantity variances, and total variance for the direct material regarding the balloons sold.

The MAN001 Accounting and Finance Assessment above question has been solved by our Accounting and Finance experts at My Uni Paper. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our experts are well trained to follow all marking rubrics & referencing style.

Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.