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Date Submitted: 10/10/2010 07:54 AM
ISVNU
HELP Bachelor of Business (Hons) Year 3
ACC301 Management Accounting 3
Assignment
Semester 1 February 2010 Intake
Date of Release: 22 March 2010
ASSESSMENT DETAILS Due Date: Value: 21 May 2010 15% of total assessment for this subject
Assignment Questions Question 1 (a) (15 marks) Deborah, the accountant at Plus Plastics wants to identify cost drivers for support overhead costs. She has the impression that the staff spend a large part of their time ensuring that the equipment is correctly set up and checking the first units of production in each batch. Deborah has collected the following data for the past 12 months:
Month January February March April May June July August September October November December Total OH Cost $84,000 41,000 63,000 44,000 44,000 48,000 66,000 46,000 33,000 66,000 81,000 57,000 $673,000 MH Batches 2,250 309 2,400 128 2,850 249 2,100 159 2,700 216 2,250 174 3,800 264 3,600 162 1,850 147 3,300 219 3,750 303 2,000 106 32,850 2,436
(a)
Using the high-low method to estimate support overhead costs based on machine hours, what would be the estimated support overhead costs (to the nearest $) for a month in which 3,000 machine hours were used? (5 marks) Using Excel, perform three regression analyses to regress overhead cost against MH, then Batches, then against both of them simultaneously. State the cost equation from each. Analyse and comment on the results of each regression and determine the best one to use as a basis for future use. (10 marks)
(b)
Question 1 (b) (10 marks) It costs $50 to produce the first unit and $30 to produce the next unit. Assuming the production process follows the learning curve phenomenon, calculate the estimated cost of producing six additional units (beyond the second unit) (a) based on a cumulative average learning curve; (5 marks) (b) based on an incremental unit learning curve. (5 marks)
Question 2 (25 marks) The Acme Company produces two products, A and B, in two departments,...