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Start date and time: 2:00 pm (Melbourne time) on 16th of June 2022.
Submission due date and time: 4:30 pm (Melbourne time) on 16th of June 2022.
Total number of pages (incl. this cover sheet): 4
类型是案例分析，不会超过四个，难度中等~mid和final套路都很熟悉！
Case study 1
LMVH Corp produces and sells three (3) products: laptop bags, back packs, and handbags. All products produced by LMVH Corp go through two production divisions: Division A and Division B. Details for laptop bags produced by LMVH Corp are as follows:
Variable production overheads amounted $6 per labour hour and the budgeted fixed production overheads amounted to $8 per labour hour. The labour rate in Division B is 50% higher than the labour rate in Division A. Each laptop bag requires 2 labour hours in division A. Variable selling and distribution overheads relating to laptop bags amount to $20 per unit. LMVH Corp aims to produce 1,500 laptop bags per month which would require 30% of the annual practical capacity at both the divisions.
Required
(a) Assist LMVH Corp in determining the selling price of laptop bags if the company wishes to generate a contribution equivalent to 60% of capital employed.
(b) Determine the full manufacturing cost per unit of laptop bags and prepare an absorption costing income statement for the laptop bags product line of LMVH for the year 2021. For the year 2021, LMVH Corp had no opening stock of laptop bags. 16,800 laptop bags were produced during the year 2021. However, only 15,000 laptop bags were sold during the year 2021 at a selling price as determined by you in requirement (a) above.
Case study 2
West Coast Link Ltd manufactures heating/cooling systems for houses and apartments. It has two support departments: Repairs and Engineering. These two departments directly support the two production departments: Moulding and Assembly. The usage of the two support departments’ output is as follows:
REQUIRED:
(a) Allocate the budgeted costs of the two support departments (Repairs and Engineering) to the two manufacturing departments (Moulding and Assembly) using:
(i) Direct method
(ii) Reciprocal method
(b) Compare and explain the main differences between the direct method and the reciprocal method.
(c) Which method of cost allocation used in a) above, do you prefer? Explain why.
(d) Explain why a manager may prefer that budgeted cost allocation rates be used, rather than actual cost allocation rates, to allocate costs to his or her department from another department.
Case study 3
IMD Ltd manufactures two (2) products ‘P’ and ‘Q’ for computer industry as follows:
Product
Annual production and sales
Selling price per unit
P
100,000 units
$110.00
Q
50,000 units
$150.00
Required
(a) Calculate the full cost per unit of ‘P’ and ‘Q’ before the product ‘P’’s redesign proposal was made.
(b) Determine the current mark up on full cost per unit of ‘P’ based on your answer to requirement (a) above. Also, determine the target cost per unit for the redesigned product ‘P’ to maintain the same markup percentage on full cost per unit as it had earlier?
(c) Evaluate if the new design for product ‘P’ achieves the cost reduction target. Show all calculations in detail.