Accounting Question

College of Administration and Finance Sciences
Assignment (1)
Deadline: Saturday 12/10/2024 @ 23:59
Course Name: Manegerial Accounting
Student’s Name:
Course Code: ACCT322
Student’s ID Number:
Semester: 1st
CRN:
Academic Year: 1446 H
For Instructor’s Use only
Instructor’s Name:
Students’ Grade:
/15
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
• The Assignment must be submitted on Blackboard (WORD format only) via
allocated folder.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks may be
reduced for poor presentation. This includes filling your information on the
cover page.
• Students must mention question number clearly in their answer.
• Late submission will NOT be accepted.
• Avoid plagiarism, the work should be in your own words, copying from students
or other resources without proper referencing will result in ZERO marks. No
exceptions.
• All answers must be typed using Times New Roman (size 12, double-spaced)
font. No pictures containing text will be accepted and will be considered plagiarism.
• Submissions without this cover page will NOT be accepted.
College of Administration and Finance Sciences
Assignment Question(s):
(Marks 15)
1. Managerial accounting reports provides both objective measures of past operations and
subjective estimates about future decisions. Therefore, management accountants interpret
cost behavior to. evaluate and describe accounting systems used for decision making in
businesses.
Explain, how management accountants classify costs to interpret cost behavior for decision
making. Give examples. (Marks 3)
Answer:
2. XYZ Corporation, a merchandising company, reported sales of 7,400 units for May at a
selling price of $677 per unit. The cost of goods sold (all variable) was $441 per unit and
the variable selling expense was $54 per unit. The total fixed selling expense was $155,600.
The variable administrative expense was $24 per unit and the total fixed administrative
expense was $370,400.
Required: (Marks 4)
a. Prepare a contribution format income statement for May.
b. Prepare a traditional format income statement for May.
Answer:
College of Administration and Finance Sciences
3. Najad Corporation manufactures a variety of products. In the past, Najad has been using a
traditional costing system in which the predetermined overhead rate was 150% of direct
labor cost. Selling prices had been set by multiplying total product cost by 200%. Sensing
that this system was distorting costs and selling prices, Najad has decided to switch to an
activity-based costing system for manufacturing overhead costs using three activity cost
pools. Selling prices are still to be set at 200% of unit product cost under the new system.
Information on these cost pools for next year are as follows:
Information (on a per unit basis) related to three popular products at Najad are as follows:
Required:
Under the activity-based costing system, calculate the selling price of one unit for the
model 19 & Model 36? (Marks 5)
Answer:
4. There are advantages and disadvantages to high fixed cost (or low variable cost) and low fixed
cost (or high variable cost) structures. Explain why? (Marks 3)
Answer: