1 ACCT2112 Group Assignment S1 2024
1 ACCT2112 Group Assignment S1 2024
1 ACCT2112 Group Assignment S1 2024
This assignment consists of TWO parts: Part A is preparation of a Master Budget and
Part B is a case study on activity-based costing. Students MUST answer both parts of the
assignment and present them in ONE Word document (converted to a PDF document for
submission). Each part must start on a new page.
Please include a cover sheet with Unit Code and Unit Name, lecturer’s and tutor’s name,
group members’ names and student numbers.
The following budget data are available for the period 1 January 2024 to 31 December 2024:
1
Products
Standard Table Family-Luxe Table
Expected Sales for the year ending 31 72,000 23,000
December 2024 (in units)
Selling Price $ 1,100 $ 1,350
Target ending inventory in units 13,000 750
Beginning inventory in units 2,500 370
Beginning inventory in dollars $ 525,000 $ 348,000
2
Machine Setup Overhead Costs
Variable Machine Setup Overhead Costs (per setup labour hour)
Supplies $ 23
Indirect manufacturing labour 51
Power (support department) 12
Total unit variable machine setup overhead cost $ 86
Fixed Machine Setup Overhead Costs
Depreciation $ 520,000
Supervision 990,800
Power (Support department cost) 23,800
Total fixed machine setup overhead cost $ 1,534,600
0.2 hour of setup labour-hour is allocated to make one unit of Standard Table and 0.3 hour of setup labour-hour
is allocated for Family-Luxe Table.
Non-Manufacturing Costs
Product Design Cost (fixed) $ 1,567,000
Marketing Costs
Fixed marketing cost $ 1,120,000
Variable marketing cost equals 5.5% of revenues (to be
computed)
Distribution Costs
Fixed distribution cost $ 1,680,000
Variable distribution cost is $2 per cubic metre of table sold
and shipped (to be computed)
Standard Table 20 cubic metres of table sold and shipped.
Family-Luxe Table 25 cubic metres of table sold and shipped.
3
Based on the above information provided by the various department managers, prepare the
following budgets for year ending 31 December 2024: (50 marks)
a. Sales/Revenue Budget (3 marks)
b. Production Budget in units (3 marks)
c. Direct Material Usage Budget in quantity and dollars (6 points)
d. Direct Material Purchases Budget in quantity and dollars (6 points)
e. Direct Manufacturing Labour Cost Budget (4 points)
f. Manufacturing Overhead Costs Budgets (8 points)
g. Budgeted Unit Cost of Ending Finished Goods Inventory (6 points)
h. Ending Inventory Budget (of Direct Materials and Finished Goods) (4 points)
i. Non-manufacturing Overhead Cost Budget (4 points)
j. Cost of Goods Sold Budget (3 points)
k. Budgeted Income Statement. (3 points)
End of Part A
4
Part B (35 marks)
WinDecor Company produces two types of window frames, Simple and Fancy. The
company’s simple costing system (traditional method) has two direct costs: direct material
cost and direct manufacturing labour cost. The company, based on simple costing system,
allocates indirect cost on the basis of machine hours. Information relating to WinDecor’s
production for 2023 are as follows:
Simple Fancy
Unit sold 4,200.00 unit 2,000.00 unit
Selling price $ 350.00 $ 550.00
Direct materials cost per unit $ 55.00 $ 95.00
Direct manufacturing labour cost per hour $ 35.00 $ 35.00
Direct manufacturing labour-hours per unit 2.00 labour-hour 3.50 labour-hour
Productions runs 50.00 95.00
Material moves 80.00 170.00
Machine setups 55.00 165.00
Machine -hours 6,500.00 hours 5,500.00 hours
number of inspections 300.00 200.00
The owners of WinDecor have heard of other companies in the industry that are now using an
activity-based costing (ABC) system and are curious how an ABC system would affect their
product costing decisions. They hire a management accounting consultant to help them
establish an ABC system. The consultant identifies five activities as generating indirect costs:
production scheduling, material handling, machine setup, assembly and inspection. The
following data are collected by the consultant that relates to the indirect cost activities and
their related activity cost drivers:
5
Assignment Presentation details are as follows.
For this group assignment, all aspects of the assignment (i.e., calculations, tables and discussions for
both parts) are to be presented in a single WORD DOCUMENT (converted to PDF for
submission). A maximum of TWO submissions are allowed and the latest will be marked. NO
EMAIL SUBMISSIONS!!!
Please upload your PDF REPORT onto LMS by 5pm, Monday 06 May 2024.
Presentation:
1. All budget schedules must be tabulated. Any one budget schedule must not run over the
page (penalty applies if a budget table runs over 2 pages).
2. Budgets are to be presented as whole numbers (that is, no decimals).
3. ALL workings and formula must be clearly shown (marks are awarded for workings). (The
workings must be shown under each budget schedule/table and noted in the schedule.)
4. Part B MUST start on a new page (in the same word document as Part A).
5. Any reference to journal articles or books must have in-text citation and shown in the
“References” section.
6. Marks are awarded for overall presentation of the assignment, including presentation of the
budget schedules, consistency of schedules in terms of headers, font size and spacing, and
spelling and grammatical accuracy.
Marking schedule:
Part A: 50 marks
Part B: 35 marks
● Presentation of Report: 15 marks
Total 100 marks
Please note that students who do not complete the task in SPARKPLUS will receive the lower of 0.5
RPF (50% of the group score) or the SPARK-adjusted score.