managerial accounting 170
Instructions – PLEASE READ THEM CAREFULLY
- The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
- Assignments submitted through email will not be accepted.
- Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
- Students must mention question number clearly in their answer.
- Late submission will NOT be accepted.
- Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
- All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
- Submissions without this cover page will NOT be accepted.
Assignment Question(s):(Marks10)
Q1. ABC prepares budgets for the quarter ending sept.30. Sales in units: July 20,000, August 50,000, September.30, 000, Oct. 25,000. Selling price is SR 10 per unit. , inventory in June 31, is 4,000 units. Desired inventory is 20% of the next month sales. (2.5 marks)
Required: Prepare sales and production budgets.
Answer:
Q2. ABC Company has equipment and it considers whether to sell it directly at a price of SR 200,000 or to make some modifications costing SR 10,000 to sell it at a price of SR 220,000.
Required: using the differential analysis which alternative do you recommend about the equipment. (2.5 marks)
Answer:
Q3.ABC Inc. has average operating assets of SR200, 000 and is required to earn a return of 15% on these assets. In the current period, the division earns net income of SR50, 000. (2.5 marks)
Required: compute the residual income.
Answer:
Q4. At ABC Inc., manufacturing overhead is applied to units of product based on direct labor-hours. The estimated direct labor hour next year is 50,000 hours; the variable manufacturing overhead rate is SR 20 per direct labor-hour. Fixed manufacturing overhead is SR 500,000 per year (2.5 marks)
Required: compute the single predetermined manufacturing overhead rate.
Answer:
