FNS60217 Advanced Diploma of Accounting = FNSACC613 Prepare and Analyse Management Accounting Information Prerequisite: This Unit has a Prerequisite FNSACC507 - Provide Management Accounting...

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FNS60217 Advanced Diploma of Accounting = FNSACC613 Prepare and Analyse Management Accounting Information Prerequisite: This Unit has a Prerequisite FNSACC507 - Provide Management Accounting Information LEARNER’S GUIDE Mode | Classroom + Online Delivery FNSACC613 Prepare and Analyse Management Accounting Information FNS60217 | FNSACC613 Prepare and Analyse Management Accounting Information Learner’s Guide | V 1.1 | April 2018 Business Institute of Australia | RTO Code 91019 Next Review: Dec 2018 Page 2 of 26 Supporting: FNS60217 Advanced Diploma of Accounting; May also support other qualifications based on respective packaging rules © E-Skills Australia, 2015 Copyright: This document and its contents are protected by Australian and International copyright laws. No part of this document may be reproduced or transmitted in any form or by any means, electronically or mechanically, including photography, scanning, recording or any information storage or retrieval system, without permission in writing from the copyright owner or from E-Skills Australia Pty Ltd. Information and/or resources used from the Commonwealth, government agencies, training.gov.au, public domain information, or any other external sources do not constitute copyright and remain the property of the original authors. All the websites and external resources mentioned in this publication are copyrighted to their owners and E-Skills or author does not endorse the views expressed by them. Web links are used as examples for reference purpose only and may have changed since publication of this resource. E-Skills Australia Pty Ltd ACN: 146 742 369 FNS60217 | FNSACC613 Prepare and Analyse Management Accounting Information Learner’s Guide | V 1.1 | April 2018 Business Institute of Australia | RTO Code 91019 Next Review: Dec 2018 Page 3 of 26 Table of Contents 1. Introduction ...................................................................................................... 4 2. Unit Overview ................................................................................................... 4 3. Competency Standards ...................................................................................... 5 4. Delivery Plan .................................................................................................... 8 Delivery Arrangement ..................................................................................... 8 Delivery Conditions ......................................................................................... 8 Suggested Learner Resources ....................................................................... 11 5. Assessment Plan ............................................................................................. 12 Assessment Method .............................................................................................. 12 General Rules of Assessment ........................................................................ 14 Submission of Works ..................................................................................... 15 Assessment Tasks and Schedule ................................................................... 15 6. Assessment Tasks ........................................................................................... 16 Assessment Task 1: ......................................................................................... 16 Assessment Task 2: ......................................................................................... 18 Assessment Task 3: ......................................................................................... 20 Assessment Task 4: .....................................
Answered 11 days AfterMay 23, 2021FNSACC613Training.Gov.Au

Answer To: FNS60217 Advanced Diploma of Accounting = FNSACC613 Prepare and Analyse Management Accounting...

Khushboo answered on Jun 04 2021
130 Votes
ASSESSMENT TASK 1
Solution 1
a) The most suitable cost driver for the allocation of the overhead cost will be the machine hour as different products are requiring different amount of machining time.
b) Calculation of Overhead recovery rate
Overhead recovery rate = Total overhead/ Total machine hour
Overhead recovery rate = 72,000/18,000 hours
Overhead recovery rate = 4
c) Calculation of ov
erhead costs per unit
    Particulars
    Product A
    Product B
    Recovery rate
    4
    4
    Machine hour
    ½
    3
    Overhead cost per unit
    2
    12
Solution 2
a) Calculation of factory overhead application rate
Factory overhead application rate = Estimated overhead/ Actual direct labour hour
= $331,800/158,000
=$2.10
b) Calculation of overhead applied in the period
Overhead applied = $2.10*146000 hour
=$306,600
c) Calculation of under or over applied overhead for the period
    Particulars
    Amount ($)
    Actual overhead
    336,400
    Overhead applied
    306,600
    Under applied overhead
    29,800
d) Flexible budget Formula
Flexible budget Formula = Y = a+ bx
Where a = Fixed costs
Flexible budget formula = 244900+ 0.55x
e) Calculation of spending variance
Variable overhead spending variance = Actual hours worked*(Actual overhead rate- standard overhead rate)
=146000*(2.30 -2.10)
= 29,800 U
f) Calculation of capacity variance
Capacity Variance = (146000-158000) *2.1
= 25,200 F
Classification of fixed costs, variable costs and semi-variable costs
    Costs
    Types
    Rent
    Fixed
    Repair of machinery
    Semi-variable
    Power
    Variable
    Depreciation of plant
    Fixed
    Production wages
    Variable
    Indirect material
    Semi variable
ASSESSMENT TASK 2
Solution 1
a) Flexible budget formula
Y= 195000+ 12.5X
b) Preparation of the flexible budget
    Particulars
    Direct labour hours of 26000
    Direct labour hours 30000
    
    
    
    Fixed costs
    195000
    195000
    Variable costs (12.5* labour hours)
    325000
    375000
    Total
    520000
    570000
c) Calculation of overhead application rate
    Particulars
    Direct labour hours of 26000
    Direct labour hours 30000
    
    
    
    Fixed costs
    195000
    195000
    Variable costs (12.5* labour hours)
    325000
    375000
    Total
    520000
    570000
    Direct labour hours
    26000
    30000
    Application rate
    20
    19
Solution 2
Given is the following information
    Particulars
    Amount($)
    Total sales
    3125000
    Total variable costs
    1875000
    Contribution margin
    1250000
    Number of units
    312500
    Contribution margin per unit
    4
a) Calculation of break-even point in units
Break-even point = Fixed costs/ Contribution margin per unit
=1,000,000/4
= 250,000 units
b) Calculation of margin of safety as percentage
Margin of safety percentage = Sales at margin of safety/ Total sales *100
    Contribution margin ratio
    40%
    Fixed costs
    1000000
    Break-even sales
    2500000
    Margin of safety
    625000
    Margin of safety percentage
    20%
c) Calculation of expected profit when selling price decreases by 10%
    Particulars
    Amount ($)
    Sales (312500*10*.90)
    2812500
    Total variable costs
    1875000
    Contribution margin
    937500
    Fixed costs
    1000000
    Net income/loss
    -62500
d) Calculation of expected profit when sales volume decreases by 10%
    Particulars
    Amount ($)
    Sales (312500*10*.90)
    2812500
    Total variable costs (312500*.90*6)
    1687500
    Contribution margin
    1125000
    Fixed costs
    1000000
    Net income/loss
    125000
e) Calculation of expected profit when fixed costs increases by 10%
    Particulars
    Amount ($)
    Total sales
    3125000
    Total variable costs
    1875000
    Contribution margin
    1250000
    Fixed...
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