HND财政预算题目答案outcome1.doc

Outcome(s) covered 1 and 2 Assessment task instructions Question 1 Jamieson Tech Ltd is a manufacturing company. The following is an extract from their budgeted information for the year after overhead costs have been apportioned to the relevant production department: Department Overheads Labour Hours Machine Hours A ￡240,000 60,000 - B ￡280,000 90,000 14,000 The following information relates to Overhead costs: (a) Within each department, Production Overheads are absorbed on the following basis: Department A — Labour Hour RateDepartment B — Machine Hour Rate (b) Administration Overheads are 10% of Prime Cost (c) Selling and Distribution Overheads are 10% of Production Cost The company has received an order for a job — reference number: 35/TGB. Specific details are as follows: (i) The job will require two types of Direct Materials –Material V and Material Z – as follows: 100 kg of Material V @ ￡8/kg 80 kg of Material Z @ ￡12/kg (ii) The job will require the following Direct Labour: Department A — 100 hours @ ￡6.00 per hour Department B — 110 hours @ ￡4.00 per hour (iii) In Department B, the order will require 80 hours’ machine time (iv) For this specific job, the company will have to hire a special machine — the cost of this hire is ￡400 (v) The company requires a profit margin of 20% on this job You are required to: Prepare an Operating Statement for the job, using the above information, showing clearly Total Cost, Profit and Selling Price. Question 2 Jamieson Tech Ltd also manufacture Product ref CPO. Again, the production process for this product utilises Departments A and B. The Operating Statement below outlines the expected costs, profit and selling price of one unit of this product. Jamieson Tech Ltd Operating Statement for one unit of Product CPO: Direct Materials ￡ ￡ 80 kg of Materia