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Midterms MA

The document contains 25 sections that provide numerical examples and explanations related to management accounting concepts such as costing, budgeting, variance analysis, and performance measurement. It includes examples of calculating breakeven point, flexible budgets, variances, and financial ratios. The various sections demonstrate how to apply different management accounting techniques to analyze costs, budgets, and performance.

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Justz Lim
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96 views10 pages

Midterms MA

The document contains 25 sections that provide numerical examples and explanations related to management accounting concepts such as costing, budgeting, variance analysis, and performance measurement. It includes examples of calculating breakeven point, flexible budgets, variances, and financial ratios. The various sections demonstrate how to apply different management accounting techniques to analyze costs, budgets, and performance.

Uploaded by

Justz Lim
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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1 Demand 200

Inventory 70
Production 130

2 The cost cannot be determined because it is outside the relevant range (50000 - 400000).

3 Breakeven Sales 600,000.00


Fixed Cost X

Breakeven Sales After 840,000.00


Fixed Cost After X + 60000

840000X = 600000X + 36000000000


240000X = 36000000000
X = 150000

X + 60000 = 210000

4 There is no variance called "Fixed Efficiency Variance".

5 AC < VC
P<S

Absorption Costing Income 36,000.00


Fixed Cost 20,000.00
Variable Costing Income 16,000.00

6 The question was looking for the old Variable Costing Income which was 30000.

7 January February March


Budgeted Sales 96,000.00 168,800.00 158,400.00
Collection for March 34,560.00 101,280.00 0
TOTAL 135,840.00

8 April May June


Budgeted Sales 968,000.00 1,248,000.00 1,664,000.00
COS 744,615.38 960,000.00 1,280,000.00
Inventory, Beg 297,846.15 384,000.00 512,000.00
Purchases 830,769.23 1,088,000.00 768,000.00

9 Y = 12500 + 5X
Y = 12500 + 5(4000)
Y = 12500 + 20000
Y = 32500

10 A 60,000.00
B 160,000.00
C 100,000.00
Operating Cost 255,500.00
Operating Income 64,500.00

11 A 214000
F 216000
Variable SV 2000 F

12 F 100000
S 108000
Fixed 8000 F

13 AC < VC
P<S

Difference of Income 3,600.00


Fixed Cost per Unit 3.00
Excess from production 1,200
Sales 10,000
Production 8,800

14 Income VC 9100
Income AC 6400
Difference 2700
Cost per unit 3
Inventory Sold 900
Ending Inventory 2100
Inventory, beg 3000

15 April May June


Sales 30000 60000 50000
COS 21000 42000 35000
Ending Inventory 50400 42000 0

16 COS 42000
Ending Inventory 42000
Beginning Inventory 50400
Purchases 33600

17 360000000 350000000 10000000


51000000 49000000 2000000 5

y = a + bx
y = a + 5x
25000 - 17500 = a
a = 7500

18 Fixed cost per unit 20.00


Ending Inventory 1000
Income is higher by 20,000.00

19 Fixed Cost 50.00


Ending Inventory 5000
Income higher by 250,000.00

20 Target Income 643500


Selling Expenses 772200
Administrative Expenses 1801800
Total Fixed + Income 3217500
CM Ratio 55%
Annual Revenue 5850000

21 Selling Expenses 772200


Administrative Expenses 1801800 Budgeted Sales
Less
Total Fixed 2574000 Breakeven Sales
CM 55% Margin of Safety
Breakeven Sales 4680000
Budgeted Sales 6000000
Margin of Safety 1320000

22 Standard Price 1.25


Actual Quantity 10800
Flexible Budget 13500

23 Unsold Banners 200


Cost 0.6
Cost of error 120

24 Annual Depreciation 258000


12
Flexible Depreciation 21500

25 Fixed Variable
A
F 480,000.00 170,000.00 650,000.00
S 480,000.00 163,640.00 643,640.00
00 - 400000).
32000 15
31576 15
Variable Costing Absorption Costing
(Direct Costing) (Full Costing)

Sales Sales
Less: Variable Product Cost Less: Cost of Sales
Product Contribution Margin Gross Profit
Less: Variable Selling Expenses Less: Selling Expenses
Total Contribution Margin Absorption Costing Income
Less: Fixed Product Cost
Fixed Selling Expenses
Variable Costing Income
Price X Quantity Variances: Price
Actual Actual Actual Material Mix
Quantity
Flexible Standard Actual Yield
Standard Standard Actual
Per unit Units Made Rate
Labor Mix
Efficiency
Yield

Four way: Spending


Variable
Efficiency

Spending
Fixed
Volume

Three Way: Actual


BAAH Spending
BASH Efficiency
Standard Volume

Two way: Actual


BASH Controllable
Standard Uncontrollable

BASH (Budgeted Fixed Cost + (Standard Price Variable X S


BAAH (Budgeted Fixed Cost + (Standard Price Variable X A
Mix and Yield: AAA (Actual Price * Actual Quantity * Actual Mix)
SAA (Standard Price * Actual Quantity * Actual Mix) Price
SSA (Standard Price * Actual Quantity * Standard Mix) Mix
SSS (Standard Price * Standard Quantity * Standard Mix) Yield
Or Standard Price per unit/batch X Batch size or batches made

st + (Standard Price Variable X Standard Quantity Variable))


st + (Standard Price Variable X Actual Quantity Variable))
Breakeven Sales

In units
BES = Fxd Cost / CM per unit

In Sales
BES = Fxd Cost / CM ratio

Sales - Variable Costs - Fixed Cost = Desired Income

Average CM if Mix
Financial Performance Measure Return of Investment

Sales ROI = Income / Investment


Less: Variable Manufacturing Costs
Manufacturing Contribution Margin Income earned
Less: Variable Non Manufacturing Costs Desired Income
Contribution Margin Residual Income
Less: Controllable Fixed Costs
Short run Performance Margin
Less: Direct, Noncontrollable Fixed Costs
Segment Margin
Less: Common Costs allocated to Segment
Operating Income

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