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ACB Assignement Amended One
ACB Assignement Amended One
Learner declaration
I, ......................................certify that the work submitted for this assignment is my own and
research sources are fully acknowledged.
Marks Awarded
First assessor
IV marks
Agreed grade
Signature of the assessor Date
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Learning outcomes covered
Assignment Brief
This assignment consists of 06 questions and should provide answers for all the questions
Question 01
Classify following items as current assets, fixed assets, intangible assets, long-term liabilities, current
liabilities, revenue, and expenses
They are paying 40% on the selling and administration cost based on the factory cost
For the material company spend € 6000
Labor hours
600hrs of Assemble € 6.00 per hour
800hrs of Programing € 7.25 per hour
100hrs of machining € 3.75 per hour
150hrs of packing € 6.50 per hour
€ 800 paid as testing cost of the phone. Company booked 1000 Program Hours and 200 machine
Hours in the production facility for the manufacturing process.
Calculate the total cost of the batch and the unit cost
If there is a selling price of € 70 what is the profit/ loss per unit and what is the total profit/ loss of
the production
(10 Marks)
Question 03
An Eagle corporation is a company that sells computer software to financial corporations.
They are selling computer software to the buyers on credit sales base.
For the upcoming months expected sales as follows:
October $ 100,300 / November $ 120,500 / December $ 115,000
Company given the credit term to buyers as follows
45% as the final settlement, 33% as the 2nd payment and 20% on the day buyers purchase items form the company
When company buys materials from the suppliers, they agree to give 2 months credit term to the company. Purchase of
the company as follows:
October $ 40,000 / November $ 65,000 / December $ 45,000
Expected opening balance for October 1st is $ 90,000
Budget Actual
Production 10,000units Production 10,500units
Sales 10,000units Sales 10,500units
$ $
Sales 130,000 Sales 190,200
(Less)
Standard Marginal Cost Actual Marginal Cost
-Materials 10,000 -Materials 11,000
-Labor 40,000 -Labor 63,500
-Var. Overhead 40,000 90,000 -Var. Overhead 83,500 158,000
=Contribution 40,000 =Contribution 32,200
(Less)
Fixed Costs 15,000 Fixed Costs 15,800
Budgeted Profit 25,000 Actual Profit 16,400
During the period material usage was 50,000kgs and 40,000 labor hours were needed to finish the product
Calculate
i. Operating Profit Variance
ii. Direct Material Variance, Direct Labor Variance, Variable Overhead Variance, Fixed Overhead Variance
iii. Prepare summery of cost variance
iv. Calculate sales variance and overall variance by using cost and sales variance
v. Prepare a statement to show the change from budgeted to actual Profit by using variances
vi. Based on the answers you receive from the calculations of above organization explain how this organization can improve
their performance for next year
(20 Marks)
Question 05
Star limited manufactures one product. The budget sales for period 6 are for 10,000 units at a
selling price of $100 per unit. Other details are follows
Two components are used in manufacture of each unit
Component Numbers Unit cost of each component ($)
XY 5 1
WZ 3 0.50
Stocks at the beginning of the period are expected to be follows:
4000 units of finished goods at a unit cost of $52.50
Component XY: 16000 units at a unit cost of $ 1
Component WZ: 9600 units at a unit cost of $ 0.50
Two department of employees are used in the manufacture of each unit:
Employee Hours per Unit Labor rate per hour ($)
Production 4 5
Finishing 2 7
Factory overhead is absorbed into unit costs based on direct labor hours
The budgeted factory overhead for the period is estimated to be $ 96,000
The administration, selling and distribution overhead for the period has been budgeted at $ 275,000
The company plans to reduce 50% in the quantity of finished stock at the end of the period 6 and
increase of 25% of the quantity of each component
Prepare the following budgets for period 6
i. Sales
ii. Production Quantity
iii. Material usage
iv. Material purchase
v. Direct Labor
vi. The budgeted Profit and loss account
(30 Marks)
Question 06
Record the following transactions in a Triple column cash book
The John trading company has undertaken the following transactions during the month of May
2018.
Year: 2018
May 01: Cash balance $2,200, bank overdraft $365.
May 03: Paid J & Co. by check $1,200, discount received from him $15.
May 05: Received from A & Co. a check for $980, discount allowed to them $20.
May 07: Deposited into bank the check received from A & Co. on May 05.
May 10: Purchased stationary for cash, $150.
May 15: Purchased merchandise for cash, $1,300.
May 15: Cash sales for the first half of the month, 2,350.
May 16: Deposited into bank $1,600.
May 18: Cash withdrawn from bank for personal expenses $150.
May 19: Issued a check for merchandise purchased, $1,650.
May 21: Drew from bank for office use, $650.
May 24: Received a check from S & Sons and deposited the same into bank, $1,560.
May 25: Paid a check to Ali Inc. for $400 and received a discount of $15.
May 27: Bought furniture for cash for office use, $390.
May 29: Paid office rent by check, $450.
May 30: Cash sales for the second half of the month $4,300.
May 31: Paid salaries by check $1,760.
May 31: Withdrew from bank for office use $1,470.
(10 Marks)
ASSIGNMENT PREPARATION GUIDELINES
1. Acknowledgement
2. Executive summary
3. Table of contents
4. List of illustrations/diagrams (if applicable)
5. Introduction
6. Answers for the question
7. Conclusion and Recommendation
8. References
9. Appendices