材料全屏McDreamy is in an industry sector which is recovering from the recent recess-新东方在线职业题库

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【论述题】

Prepare for next year a flexible budget statement on the assumption that the company operates at 85% of capacity; your statement should show both contribution and profit.

考点：Chapter10Budgetingandstandardcosting

Flexible budget statement for next year operating at 85% capacity

Workings

1 65% of capacity = 10,000 units

∴100% of capacity = 10,000 ÷ 0.65 = 15,385 units

∴ 85% of capacity = (10,000 ÷ 0.65) × 0.85 = 13,077 units

∴ 75% of capacity = 11,538

∴ 55% of capacity = 8,462

2 Current direct material cost per unit = $1,000,000 ÷ 10,000

= $100 per unit

∴ Flexible budget allowance for next year = $100 × 1.06 × 13,077

= $1,386,162

3 Current direct wages cost per unit = $1,750,000 ÷ 10,000

= $175 per unit

∴ Flexible budget allowance for next year = $175 × 1.03 × 13,077

= $2,357,129

4 Production overhead increases by $53,830 for an increase in activity of (10,000 – 8,462) units

∴Variable production overhead per unit = $35

∴Variable overhead allowance for 85% capacity = 13,077 × $35 = $457,695

Plus 7% increase $32,039

Total allowance $489,734

5 Selling overhead increases by $7,690 for an increase in activity of (10,000 – 8,462) units.

∴Variable cost per unit = $5

∴Variable overhead allowance for 85% capacity = 13,077 × $5 = $65,385

Plus 7% increase $4,577

Total allowance $69,962

6 $

Total production overhead at 65% activity 650,000

Less variable overhead (10,000 × $35 (W4)) 350,000

Fixed overhead this year 300,000

Plus 10% increase 30,000

Total allowance 330,000

7 $

Total selling overhead at 65% activity 200,000

Less variable overhead (10,000 × $5 (W5)) 50,000

Fixed overhead this year 150,000

Plus 7.5% increase 11,250

Total allowance 161,250

8 Administration overhead = $120,000 × 1.1 = $132,000

9 The cost and selling price structure is as follows.

Sales price 100.00

Profit 16.67

Cost 83.33

∴Profit as a percentage of cost = 16.67 / 83.33× 100% = 20% of cost

Total cost ($4,302,987 + $623,250) 4,926,237

Profit at 20% of cost 985,247

∴ Sales value 5,911,484

多做几道

A public health clinic is the subject of a scheme to measure its efficiency and effectiveness. Among a number of factors, the 'quality of care provided' has been included as an aspect of the clinic's service to be measured. Three features of 'quality of care provided' have been listed.

(1) Clinic's adherence to appointment times

(2) Patients' ability to contact the clinic and make appointments without difficulty

(3) The provision of a comprehensive patient health monitoring programme

Required

(i) Suggest a set of quantitative measures which can be used to identify the effective level of achievement of each of the features listed.

(ii) Indicate how these measures could be combined into a single 'quality of care' measure.

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【论述题】

The absence of the profit measure in non profit seeking organisations causes problems for the measurement of their efficiency and effectiveness.

Required

(i) Explain why the absence of the profit measure should be a cause of the problems referred to.

(ii) Explain how these problems extend to activities within business entities which have a profit motive. Support your answer with examples.

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【论述题】

Compare and contrast the use of residual income and return on investment in divisionalperformance measurement, stating the advantages and disadvantages of each.

Division Y of Chardonnay currently has capital employed of $100,000 and earns an annual profit after depreciation of $18,000. The divisional manager is considering an investment of $10,000 in an asset which will have a ten-year life with no residual value and will earn a constant annual profit after depreciation of $1,600. The cost of capital is 15%.

Calculate the following and comment on the results.

(i) The return on divisional investment before and after the new investment

(ii) The divisional residual income before and after the new investment

Explain the potential benefits of operating a transfer pricing system within a divisionalised company.