You are on page 1of 5

# ‫بسم هللا الرحمن الرحيم‬

Prof. Salem A Helles Advanced Managerial Accounting
Accounting Department Faculty of Commerce
Date: Wed. 16, June, 2010 Master of Accounting and Finance
: ‫الرقم الجامعي‬ : ‫اسم الطالب‬

ANSWER EIGHT QUESTIONS ONLY: (7.5 Mark for each Question)
Question One:
The administrator of Alwafa Hospital would like a cost formula linking the
administrative costs involved in admitting patients to the number of patients
admitted during a month. The admitting department's costs and the number of
patients admitted during the immediately preceding eight months are given in the
following table:

Month Patients Department
May 1,800 \$14,700
June 1,900 \$15,200
July 1,700 \$13,700
August 1,600 \$14,000
September 1,500 \$14,300
October 1,300 \$13,100
November 1,100 \$12,800
December 1,500 \$14,600

Required:
1. Use the high-low method to establish the fixed and variable components of
2. Compute admitting department cost if number of patient is 1200.
Question Two:
XY Company produces a single product. Variable manufacturing overhead is applied
to products on the basis of direct labor-hours. The standard costs for one unit of
product are as follows:

Direct material: 6 ounces at \$0.50 per ounce…………… \$3
Direct labor: 1.8 hours at \$10 per hour…………… 18
Variable manufacturing overhead: 1.8 hours at \$5 per hour 9
Total standard variable cost per unit…………… \$30

During June, 2,000 units were produced. The costs associated with June's

Page 1 of 5

.000 hours at \$9.… \$10.75 per hour.600. .45 per pint. . .. . 3. . Annual fixed costs are \$ 15. . .000 pounds available each month. Question Four: Middle East Company produces three products.. The variable cost is \$ 0.Suppose only strawberries are produced and sold. . . Two pints of strawberries are produced for every pint of raspberries. The same material is used in each product.operations were as follows: Material purchased: 18. .000 Variable manufacturing overhead costs incurred . 2. ‫ـــــــ‬ Direct labor: 4. The cost driver for variable costs is pints of fruit produced. Required: 1. . . . those for A. .800 Material used in production: 14.. . Strawberries sell for \$ 1. . . . Required: Which orders would you advise the company to accept first. Data concerning the three products follow ( per unit): product A B C Selling price \$80 \$56 \$70 Less variable expenses: Direct materials 24 15 9 Other variable expenses 24 27 40 Total variable expenses 48 42 49 Contribution margin \$32 \$14 \$21 Contribution margin ratio 40% 25% 30% Demand for the company's products is very strong.800 Required: Compute the direct materials. . or for C? Which orders second? Third? Page 2 of 5 . . . . direct labor. with far more orders each month than the company has raw materials available to produce.95 per pint of raspberries.000 ounces at \$0. A. . The material costs \$3 per pound with a maximum of 5.10 per pint. .75 per pint of strawberries and \$0. \$20.000 ounces. . B and C. . raspberries for \$ 1. . .60 per ounce……. . for B. .Compute the number of pints of strawberries and the number of pints of raspberries produced and sold at the break-even point. .How many pints would the Company have to sell in order to achieve a target net income of \$5400. . . Question Three:- Gaza Farms Company produces strawberries and raspberries. . \$39. and variable manufacturing overhead variances.

000 parties Serving a diner…. in consultation with the owner. the average costs per diner was \$15. such as the costs of cleaning linen. The results appear below: Activity Cost Pool Activity Measure Total cost Total Activity Serving a party of diners ………. Therefore. and top-management salaries. using data from last month's operations.000 12. Question Seven:- Page 3 of 5 . Some costs. He knew that total cost for the month (including organization- sustaining costs) was \$180. Question Five: Seven's Cookhouse is a popular restaurant located on student Union in Gaza.. Number of parties served \$12.000 and that 12. property taxes. A party of seven diners who order five drinks in total . A party of three diners who do not order any drinks. are the same whether one person is at a table or the table is full. the owner knew very little about the costs of the restaurant. identified three major activities. b. He then completed the first-stage allocations of costs to the activity cost pools. Prior to the activity-based costing study. Compute CM Ratio per unit. what is the total cost of serving each of the following parties of diners? a. What plan would maximize profits? ( How many chair and table the company should produce in order to maximize profit?) b.000 5. Required: a. such as washing dishes.000 diners had been served.000 drinks The above costs include all of the costs of the restaurant except for organization- sustaining costs such as rent.000 10. The Accountant. depend on the number of diners served.. Required: According to the activity-based costing system.000 board feet this month. A group of diners who ask to sit at the same table are counted as a party. Question Six: Furniture Company makes two products from selected hardwoods:- Chairs Tables Selling price per unit \$80 \$ 400 Variable cost per unit \$30 \$ 200 Board feet per unit 2 10 Monthly demand 600 100 The company's supplier of hardwood will only be able to supply 2. Other costs. Number of diners served \$90.000 diners Serving a soft drink…. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired an Accountant to conduct an activity-based costing study. Number of drinks served \$26.

....000....000.. \$5. July.......... with year.. The cost and revenue characteristics of the new product line per year would be as follows: Sales ........ " said F.... Sun products is a decentralized company with four autonomous divisions. The divisions are evaluated on a basis of the return that they are able to generate on invested assets....520..000..... 65% of Sales Fixed expenses . June.920....000.000 The company had an overall return on investment ( ROI) of 18% last year ( considering all divisions)... \$270. and August for purchases and for disbursements for purchases....000 Divisional operating assets.000....600... \$ 220...000 Contribution margin \$7........ \$21.000.000 Variable expenses ......000.. 2...000 Net operating income. Would you accept the new product line? 4... \$ 250..........400.....000 Less fixed expenses .... also compute the residual income as it will appear if the new product line is added...... July.........000.......... also compute the ROI as it will appear if the new product line is added.......... would you be inclined to accept or reject the new product line? Explain 3...... Required: Prepare budget schedules for June. Suppose that the company views a return of 15% on invested assets as being the minimum that any division should earn and that performance is evaluated by the residual income approach........ Expected sales for June \$440... and I don't want any letdown"...... July \$350.000 Required: 1........000. If you were in F.... Quantrill Furniture Mart plans inventory levels (at cost) at the end of each month as follows: May......250...end bonuses given to divisional managers who have the highest ROI figures.000......... \$13. Helmy's position . Question Eight: " I know headquarters wants us to add on that new product line.000... \$1.... Operating results for the company's East Division for last year are given below: Sales ..... Question Nine: Page 4 of 5 .... Purchases in May were \$180.. Compute the East Division's ROI for last year.... Our division has led the company for three years. Compute the East Division's residual income for last year.....680. \$2.... August.. and August \$400.... A given month's purchases are paid as follows: 20% during that month and 80% the next month. Helmy...... The company's East Division has an opportunity to add a new product line that would require an investment of \$3.... manager of Sun Product East Division " But I want to see the numbers before I make a move.......000...... \$ 240........000 Less variable expenses .. \$9....... \$5.......... Cost of goods sold is 60% of sales..........

1‬احتساب كمية الطلب االقتصادية‪.‬‬ ‫‪Page 5 of 5‬‬ .2‬عدد أوامر الشراء الواجب إجرائها خالل العام‪.‫من مددا‬ ‫د‬ ‫‪ " Balanced Scorecard" :‬مددل ا الملةددلم المنةا‪ ،‬ددم مددل ا مناددل‪ ،‬الاةا ددك‬ ‫أولا‬ ‫لقي س األ‪،‬اء كيف ياما هذا الن ؟‬ ‫‪ :‬كيف تخنلف قطم تم ثا الن ليف عن قطم تم ثا السار ؟‬ ‫ث يا‬ ‫‪Question Ten:‬‬ ‫تقة شركم فلسطينيم بنة‪،‬يع أصن ف منال‪،‬ة من المةا‪ ،‬الغذائيم على المط عم ومن هدذ األصدن ف أحدل أ دةا‬ ‫الللة المقطام والني تلنةي كا عبةة منه على ‪ 12‬قطام‪ .‬‬ ‫‪ .‬تبلغ ت لفم تلضير الابةة علدى الردركم ‪ \$20‬فدي‬ ‫حين تب الابةة بسار ‪ \$ 35‬وتنةقع الرركم من براته الس بقم أن كميدم الطلدك الردهريم ودن ةن علدى هدذا‬ ‫الةنف ‪ 2000‬عبةة تبلغ ت لفم الحنفد بد لابةة ‪ %10‬مدن ت لفدم تلضدير الابدةة‪ .4‬‬ ‫المطلةب‪:‬‬ ‫‪ .‬‬ ‫على افتراض عدم وجود مخزون أمان وأن الشركة تعمل ‪ 360‬يوم في السنة ما مستوى المخزون الذي يتوجب‬ ‫عند الوصول إليه القيام بإصدار أمر الشراء‪.‬تلند ب الابدةة مدن تد ريخ‬ ‫إصلار أمر الرراء والنلضير ولغ يم تاهيزه للبيع إلى ‪ 9‬أي وتبلغ ت لفم إصلار أمر الرراء ‪.\$2.