College of Business

Examination Cover Sheet

Student: Sultan Al Baloushi Id Number: S0000000949

Course Name Principles Of Managerial Accounting

Course Code Acct 201

Question 1 2 3 TOTAL
CLOs 1 2 3
Value 5 5 5 15
Result

Signature Date
Section 1 :

Solution:
Variable cost = $72

Selling commission=120*10%=12$

Total variable cost= 72+12=84$

Total fixed cost=1550+2500=4050$

1) contribution margin per phone= selling price –variable cost=120-84=36$

2) Contribution margin ratio=( contribution margin/sales)=36/120=30%.

3) Breakeven point=fixed expenses/ contribution margin per

phone=4050/36=112.50 phone.

4) phones must be sold to earn a targeted profit of $9,500=

¿ cost+ desired profit

= (4050+9500)/36=376.39 phones.
contribution per phone

5) Margin of safety= actual sales - Breakeven point= (376.39- 112.5)*120=31666.8

2
Section 2 :

1) Predetermined overhead rate( based on Estimated activity)

Predetermined overhead rate= (Manufacturing overhead/ Estimated hour)

= 5,572,320/76,000=73.32$

2) In case Job Q58A overhead =73.32*130= 9531.6$

3) Predetermined overhead rate (based on the activity ).

Predetermined overhead rate= Manufacturing overhead/ Estimated hour

=5,572,320/94000=59.28$

4) In case Job Q58A overhead=59.28*130=7706.4$

5) Unused capacity =94000-82800=11200

5,572,320
Cost of unused capacity= *(94000-82800)=59.28*11200=663,936$
94000

3
 Section 3
ANSWER1:
the unit product cost:
The unit product cost of Product A=7+9+4+(320000/27000)=31. 85185
The unit product cost of Product B=6+7+7+(270000/18000)= 6+7+7+15=35

ANSWER2:
The profit per product

  Product (A) Product (B)

SALE 23000* $72= $1656000 17000* $67=$1139000
Direct materials 27000 * 7 =189000 18000 * 6 =108000
Direct labor 27000 * 9 =243000 18000 * 7 =126000
Variable manufacturing overhead 27000 * 4=108000 18000 * 7 =126000
Variable selling and administrative cost 27000 * 5=135000 18000 * 3 =54000
Total Variable Cost 675,000.00 $ 414,000.00 $
Contribution =Sale -Total Variable Cost 981,000.00 $ 725,000.00$
Fixed Cost
Fixed Manufacturing Overhead 320,000.00 $ 270,000.00 $
Fixed Selling And Administrative Cost 210,000.00 $ 150,000.00 $
Total Fixed Cost 530,000.00 $ 420,000.00 $
Net Profit= Contribution- Fixed Cost 451,000.00 s 305,000.00 $

Net Profit For Product A= 451,000.00 $

Net Profit For Product B= 305,000.00 $