Last Quiz Cost Accounting

The following is your quiz questions but focus more on your textbook exercises... all the best

Yangyang  Industrial manufactures a single product whose selling price is $480 per unit. The unit variable production costs is $264 and variable sales commission is 10%. Monthly fixed costs is $720,000.

Required:

Note: Each part is independent of the other for parts (a) to (d) below.

(a)        Calculate:

(i)         The breakeven point in units and sales values.                                     [4 marks]

(ii)        Units to be sold per month to earn a profit of $960,000                     [3 marks]

(iii)       Profit when the monthly sales are $9,120,000.                                    [3 marks]

(b)        Calculate the margin of safety percentage for the month if variable production costs per unit increases by 10% and the sales achieved are $3,680,000.                                                    [5 marks]

(c)        If fixed costs were to be increased by $34,400 and an additional 500 units were sold per month, compute the additional profit per month.                                                                             [5 marks]

(d)       Assume that the sales commission is reduced to 5% of the selling price but an additional fixed salary of $100,000 is incurred.  State the number of units to be sold per month to earn a profit of $580,000.            [5 marks]

2. There are three production departments: Machining, Moulding, and Finishing department in Junda furniture Ltd

The budgeted overhead of the company are as follows:

Overheads	$	Basis of Apportionments
indirect materials	34200	Machine hours
Indirect labours	171000	Machine hours
Depreciation of Plant	64800	Plant Value
Factory rent	81000	Floor Area
Other overhead
Machining	45000	Allocated
Moulding	16000	Allocated
Finishing	9000	Allocated
Other information
			Floor area	Plant Value	Machine Hours
		Department: Machining	8100	13500	36000
		Moulding	1080	18000	18000
		Finishing	1620	33300	14400

Question

Prepare an overhead analysis and calculate the individual department overhead absorption rate for each of the three departments, based cost driver