SUPP ASSESSMENT Student Number: (enter on the line below) Student Name: (enter on the line below) HA2011 MANAGEMENT ACCOUNTING final assessmeNt Trimester 1, 2021 Assessment Weight: 50 total marks...

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SUPP ASSESSMENT Student Number: (enter on the line below) Student Name: (enter on the line below) HA2011 MANAGEMENT ACCOUNTING final assessmeNt Trimester 1, 2021 Assessment Weight: 50 total marks Instructions: · All questions must be answered by using the answer boxes provided in this paper. · Completed answers must be submitted to Blackboard by the published due date and time. Submission instructions are at the end of this paper. Purpose: This assessment consists of six (6) questions and is designed to assess your level of knowledge of the key topics covered in this unit HA2011 Final Assessment T1 2021 Question 1( 7 marks) a) Assume Domino’s Pizza is considering offering a new product—a 6-inch (15.24 cm) pizza. Identify two specific financial and two specific non-financial information the management accountant might provide to assist the management of Domino’s Pizza with the new product idea? (2 marks) b) ‘Management accounting is always evolving due to changes in the business environment.’ Explain what this statement means and give examples on what some of the changes are. (5 marks) ANSWER: ** Answer box will enlarge as you type Question 2(7 marks) a) A company has the following transactions during the week. Purchase of $1,000 raw materials inventory Assignment of $500 of raw materials inventory to Job 5 Payroll for 20 hours with $1,000 assigned to Job 5 Factory utility bills of $750 Overhead applied at the rate of $10 per hour Required: What is the cost assigned to Job 5 at the end of the week? (2 marks) b) When setting its predetermined overhead application rate, Tasty Turtle estimated its overhead would be $75,000 and manufacturing would require 25,000 machine hours in the next year. At the end of the year, it found that actual overhead was $74,000 and manufacturing required 24,000 machine hours. Required: i) Determine the predetermined overhead rate. (1.5 marks) ii) What is the overhead applied during the year? (1.5 marks) iii) Determine the under- or overapplied overhead. (2 marks) SHOW YOUR WORKING ANSWER: Question 3(7 marks) a) Which of the following are likely to use service costing? Justify your answer in each case. (3 marks) (i) A college (ii) A hotel (iii) A plumber b) The following information relates to a management consultancy organisation: $ Salary cost per hour for senior consultants 40 Salary cost per hour for junior consultants 25 Overhead absorption rate per hour applied to all hours 20 The organisation adds 40% to total cost to arrive at the final fee to be charged to a client. Client number 209 took 54 hours of a senior consultant's time and 110 hours of junior consultants' time. Required: What is the final fee to be charged for Client number 209? (4 marks) SHOW YOUR WORKING ANSWER: Question 4(11 marks) a) Golden Point Company has applied at a local bank for a short-term loan of $150,000 starting on October 1, 2020. The bank’s loan officer has requested a cash budget from the company for the quarter ending December 31, 2020. The following information is needed to prepare the cash budget: Sales $600,000 Purchases 350,000 Salaries and wages to be paid 125,000 Rent payments 7,000 Supplies (payments for) 4,500 Insurance payments 1,500 Other cash payments 22,000 A cash balance of $24,000 is planned for October 1. Accounts receivables are expected to be $48,000 on October 1. All of these accounts will be collected in the quarter ending December 31. In general, sales are collected as follows: 90% in the quarter of sale, and 10% in the quarter after sale. Accounts payable will be $480,000 on October 1 and will be paid during the quarter ending December 31. All purchases are paid in the quarter after purchase. Required: a) Prepare a cash budget for the quarter ending December 31, 2020. Assume that the $150,000 loan will be made on October 1 and will be repaid with interest at 10% on December 31. (7 marks) b) If the company desires a minimum cash balance of $18,000, will the company be able to repay the loan as planned on December 31? (4 marks) SHOW YOUR WORKING ANSWER: Question 5(11 marks) a) The income statement comparison for Rush Delivery Company shows the income statement for the current and prior year. Required: a) Determine the operating income (loss) for each year. (2 marks) b) Determine the operating income (% of sales) for each year. (2 marks) c) The company made a strategic decision to invest in additional assets in the current year. These amounts are provided. Using the total assets amounts as the investment base, calculate the ROI. Was the decision to invest additional assets in the company successful? Explain. (3.5 marks) d) Assuming an 8% cost of capital, calculate the RI for each year. Explain how this compares to your findings in (c). (3.5 marks) SHOW YOUR WORKING ANSWER: Question 6(7 marks) a) Viking Corporation’s variable cost per unit produced is $100. Wholesaler Y offers to buy 2,000 additional units at $120 each. Wholesaler Z proposes to buy 1,500 additional units at $140 per unit. Viking has enough excess capacity to produce one but not both of the orders. Fixed costs are not affected by accepting either offer. Required: Which offer should Viking accept and why? (4 marks) b) Colin O’Shea has a carpentry shop that employs 4 carpenters. Colin received an order for 1,000 coffee tables. The coffee tables have a round tabletop and four decorative legs. An offer for $500 per table was received. Colin found an unfinished round tabletop that he could buy for $50 each. The quantitative cost data to make the tabletop is shown below: Direct materials $10 Direct labor 35 Variable overhead 10 Fixed overhead 7 Required: What qualitative factors would Colin consider before he decides to buy the tabletop or make it? (Hint: No calculations required] (3 marks) ANSWER: END OF FINAL ASSESSMENT Submission instructions: · Save submission with your STUDENT ID NUMBER and UNIT CODE e.g.EMV54897 HA2011 · Submission must be in MICROSOFT WORD FORMAT ONLY · Upload your submission to the appropriate link on Blackboard · Only one submission is accepted. Please ensure your submission is the correct document. · All submissions are automatically passed through SafeAssign to assess academic integrity.
Answered Same DayJun 15, 2021HA2011

Answer To: SUPP ASSESSMENT Student Number: (enter on the line below) Student Name: (enter on the line below)...

Sumit answered on Jun 15 2021
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SUPP ASSESSMENT

Student Number: (enter on the line below)
Student Name: (enter on the line below)

HA2011
MANAGEMENT ACCOUNTING
final assessmeNt
Trimester 1, 2021
Assessment Weight:     50 total marks
Instructions:
· All questions must be answered by using the answer boxes provided in thi
s paper.
· Completed answers must be submitted to Blackboard by the published due date and time.
Submission instructions are at the end of this paper.
Purpose:
This assessment consists of six (6) questions and is designed to assess your level of knowledge of the key topics covered in this unit
            
        
HA2011 Final Assessment T1 2021
Question 1    ( 7 marks)
a) Assume Domino’s Pizza is considering offering a new product—a 6-inch (15.24 cm) pizza. Identify two specific financial and two specific non-financial information the management accountant might provide to assist the management of Domino’s Pizza with the new product idea? (2 marks)
b) ‘Management accounting is always evolving due to changes in the business environment.’ Explain what this statement means and give examples on what some of the changes are. (5 marks)
ANSWER: ** Answer box will enlarge as you type
(a). Two Specific financial information:
(i). Cost of the new pizza.
(ii). Sale price of the new pizza.
Two Specific non-financial Information:
(i). Impact on the other products.
(ii). Impact on procuring materials for pizza making.
(b). Since business runs in a dynamic environment which is always changing, hence the management accounting also needs to change as per the changing needs of the business. Some of the major change is the adaptation of the Activity Based Costing Method instead of the Traditional Costing Method.
Question 2    (7 marks)
a) A company has the following transactions during the week.
    Purchase of $1,000 raw materials inventory
Assignment of $500 of raw materials inventory to Job 5
Payroll for 20 hours with $1,000 assigned to Job 5
Factory utility bills of $750
Overhead applied at the rate of $10 per hour
Required: What is the cost assigned to Job 5 at the end of the week? (2 marks)
b) When setting its predetermined overhead application rate, Tasty Turtle estimated its overhead would be $75,000 and manufacturing would require 25,000 machine hours in the next year. At the end of the year, it found that actual overhead was $74,000 and manufacturing required 24,000 machine hours.
Required:
i) Determine the predetermined overhead rate. (1.5 marks)
ii) What is the overhead applied during the year? (1.5 marks)
iii) Determine the under- or overapplied overhead. (2 marks)
SHOW YOUR WORKING
ANSWER:
Question 3    (7 marks)
a) Which of the following are likely to use service costing? Justify your answer in each case.
(3 marks)
    (i) A college
    (ii) A hotel
    (iii) A plumber
b) The following information relates to a management consultancy organisation:
                                                                                $
Salary cost per hour for senior consultants                             40
Salary cost per hour for junior consultants                             25
Overhead absorption rate per hour applied to all hours             20
The organisation adds 40% to total cost...
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