A. Briefly explain the main differences between Financial Accounting and managerial Accounting. (5 marks) B. Briefly...

  

 

Transcribed Image Text:

A. Briefly explain the main differences between Financial Accounting and managerial Accounting. (5 marks) B. Briefly distinguish between (i) a variable cost, (ii) a fixed cost (iii) and a mixed cost. Give an example for each type of these costs. (3 marks) c. Why do companies use predetermined overhead rates rather than actual manufacturing overhead costs to apply overhead to jobs? (2 marks) Question Two: Problem Solving (1) (10 Marks) Leader Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour $3.80 50,000 $215,000 Recently Job T496 was completed with the following characteristics: Total machine-hours 240 Direct materials Direct labor cost $735 $8,880 Required: a. Calculate the estimated total manufacturing overhead for the year. b. Calculate the predetermined overhead rate for the year. e. Calculate the amount of overhead applied to Job T496. d. Calculate the total job cost for Job T496. Question Three: Problem Solving (2) (10 Marks) XYZ Company has two support departments (S1 and S2) and two producing departments (P1 and P2). Total department costs for the support and producing departments are as follows: sIE 45 000 s2 30 000 P1 90 000 P2 80 000 Estimated percentages of services used by these departments are as follows: s1 s2 P1 P2 s1 - 10%50%40% S210%- 30%60% Required: a. Prepare a schedule allocating the support department costs to the producing departments using the direct allocation method. b.Prepare a schedule allocating the support department costs to the producing departments using the sequential allocation method. Question Three: Problem Solving (2) (10 Marks) XYZ Company has two support departments (S1 and S2) and two producing departments (P1 and P2). Total department costs for the support and producing departments are as follows: sIE 45 000 s2 30 000 P1 90 000 P2 80 000 Estimated percentages of services used by these departments are as follows: s1 s2 P1 P2 s1 - 10%50%40% S210%- 30%60% Required: a. Prepare a schedule allocating the support department costs to the producing departments using the direct allocation method. b.Prepare a schedule allocating the support department costs to the producing departments using the sequential allocation method. A. Briefly explain the main differences between Financial Accounting and managerial Accounting. (5 marks) B. Briefly distinguish between (i) a variable cost, (ii) a fixed cost (iii) and a mixed cost. Give an example for each type of these costs. (3 marks) c. Why do companies use predetermined overhead rates rather than actual manufacturing overhead costs to apply overhead to jobs? (2 marks) Question Two: Problem Solving (1) (10 Marks) Leader Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour $3.80 50,000 $215,000 Recently Job T496 was completed with the following characteristics: Total machine-hours 240 Direct materials Direct labor cost $735 $8,880 Required: a. Calculate the estimated total manufacturing overhead for the year. b. Calculate the predetermined overhead rate for the year. e. Calculate the amount of overhead applied to Job T496. d. Calculate the total job cost for Job T496. Question Three: Problem Solving (2) (10 Marks) XYZ Company has two support departments (S1 and S2) and two producing departments (P1 and P2). Total department costs for the support and producing departments are as follows: sIE 45 000 s2 30 000 P1 90 000 P2 80 000 Estimated percentages of services used by these departments are as follows: s1 s2 P1 P2 s1 - 10%50%40% S210%- 30%60% Required: a. Prepare a schedule allocating the support department costs to the producing departments using the direct allocation method. b.Prepare a schedule allocating the support department costs to the producing departments using the sequential allocation method. Question Three: Problem Solving (2) (10 Marks) XYZ Company has two support departments (S1 and S2) and two producing departments (P1 and P2). Total department costs for the support and producing departments are as follows: sIE 45 000 s2 30 000 P1 90 000 P2 80 000 Estimated percentages of services used by these departments are as follows: s1 s2 P1 P2 s1 - 10%50%40% S210%- 30%60% Required: a. Prepare a schedule allocating the support department costs to the producing departments using the direct allocation method. b.Prepare a schedule allocating the support department costs to the producing departments using the sequential allocation method.

Answer rating: 100% (QA)

Q1A Solution Mangerial accounting and financial accounting both deals with numbrer however in financial accounting the method is based on accounting standars wereas in manegerial accounting also know ... View the full answer