Accounting and Management Control II
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Protect Ltd a small tailor produces face masks. The monthly fixed costs for rent, insurance, maintainance, cleaning etc. is budgeted to EUR 12542.
Protect Ltd sells its masks for EUR 20 per unit.
The variable cost per unit (material) is budgeted to EUR 15 per unit.
Management aims for a profit of EUR 5382.
Required: Calculate the required volume of activity to generate the target profit.
Hint: round to whole-numbers and enter your result without thousander separator and decimal places (e.g. your result is 2560,7 you enter 2561)
Ghost buster Ltd produces pumpkins for Halloween.
The business expects the following to arise during the next month:
- Direct material cost in EUR: 18270
- Direct labour cost in EUR: 16089
- Depreciation of machine in EUR: 7450
- General overheads in EUR: 20629
- Direct labour hours: 1817
- Machine hours: 1578
The business has received the following requirement:
100 units of large pumpkins extra spooky. One pumpkin requires EUR 4 of direct material and 0,5 hour of direct labour and 6 minutes machine time.
Calculate the full cost for the requirement (100 units).
Hint: Multiple answers can be selected and correct!
Mark the correct answers.
Uses of full cost information are....
Ghost buster Ltd produces stickers for Halloween.
The business expects the following to arise during the next month:
- Material cost: 18943
- Labour cost: 33975
- Other cost: 25550
- Number of units produced 28835
Calculate the full cost per unit?
Mark the correct answers.
Protect Ltd a small tailor produces face masks. The monthly fixed costs for rent, insurance, maintenance, cleaning etc. is budgeted to EUR 15000.
Protect Ltd gets an offer for 3000 masks for EUR 17 per unit.
The variable cost per unit (material) is budgeted to EUR 8 per unit.
Required: Mark the correct answers.
Hint: round to whole-numbersKahlenberg Ltd produces 3 different products A, B and C. The details of which are as follows:
| Products | A | B | C |
|---|---|---|---|
| Selling price per unit in € | 100.00 | 80.00 | 130.00 |
| Variable cost per unit in € | 50.00 | 40.00 | 70.00 |
| Machine time per unit in h | 10 | 6 | 12 |
The machine time of the company is limited to 240h per week.
Kahlenberg Ltd. manufactures a product that has a fixed cost of € 800,000.00 and a variable cost 0f € 200.00 per unit. The business has making 20,000 units and selling them for € 400.00 per unit. There is excess capacity in the plant and there is an additional offer to sell 1,000 units for € 240.00 per unit.
What should Kahlenberg Ltd. do?
Mark the correct statements (Hint: marginal costs = variable costs)
Kahlenberg Ltd. has fixed costs of € 600,000.00. A product that sells for € 50.00 is a candidate for being dropped from the product mix. The variable cost of the product is € 40.00 per unit. The company estimates that all of the variable cost avoidable and 10 percent of the fixed costs are avoidable if the business drops the product from its product mix. If it continues to provide the product, sales is expected to be 5,000 units.
Should Kahlenberg Ltd. drop the product?
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