BCO322 Budgeting and Control Essay
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages Description/Paper Instructions
Mid-Term Assignment Written assignment (essay and calculations)
Activity brief
BCO322 – Budgeting and Control
Online campus
Professor:
Description Your knowledge will be tested on the content of week 1 to 6 of the course.
Format This activity must meet the following formatting requirements: · Font size 12
· 1200 – 2200 words
· Harvard Referencing System
Due date Date: Monday 15 March 2021 Time: 14:00 CET
Weight towards final grade This activity has a weight of 40% towards the final grade. Learning outcomes · Outcome One: Classification of costs · Outcome Two: Cost of Finished Goods
· Outcome Three: Cost of Goods Sold
· Outcome Four: Job order and process costing
· Outcome Five: Cost Volume Profit Analysis-Cost per unit
· Outcome Six: Cost Volume Profit Analysis-Breakeven Analysis
· Outcome Seven: Cost Volume Profit Analysis-Margin of Safety
· Outcome Eight: Cost Volume Profit Analysis-operating income with different volumes
Assessment criteria · Answers should be clear and well presented (Provide spacing between paragraphs, number your questions correctly) · Remember to in-text reference and provide your referencing at the end.
· Referencing should be Harvard Style
· Show all calculations
· Cannot submit photos. May use MS Word, MS Excel, Adobe Acrobat, or similar software.
Questions:
QUESTION 1
- Classification of costsUsing the code letters below, indicate in the space provided how each of the following costs should be classified for a pen manufacturing company:
Costs
____ (a) Property tax on the factory building.
____ (b) The chief financial officer’s salary.
____ (c) Plastic used to manufacture pens.
____ (d) Janitors at the factory.
____ (e) Manufactured pens waiting to be sold to customers.
____ (f) Advertising logos.
____ (g) Partially completed pens.
QUESTION 2
- The following information has been taken from the perpetual inventory system of Imperial Mfg. Co. for the month ended September 30:
- What does the total amount of inventory to be included in Imperial’s September 30th balance sheet amounts to:
- What are the Total manufacturing costs charged (debited) to Work in Process during September:
- Calculate the cost of finished goods manufactured in September
- Calculate the cost of goods sold in September:
QUESTION 3
3.1. There are two distinct types of cost accounting systems: job order costing systems and process costing systems. How does management decide whether to use a job order costing system or a process costing system in any given manufacturing situation? Explain briefly.
3.2. Job order cost system
Century Pools designs and builds custom pools and spas to the customer’s order and uses a job order system. The predetermined overhead rate for the current year is 60% of direct labor cost.
At the end of the current year, Century Pools’ direct labor cost totaled $170,000 and actual overhead amounted to $105,000.
A pool built for F. Becker required $32,000 of direct materials and $6,500 of direct labor. It was completed in May of the current year.
(a) Compute the total cost of the Becker pool as shown on the job cost sheet at date of completion.
(b) Compute the amount of under- or over-applied manufacturing overhead for Century’s operations for the current year.QUESTION 4
Percula Farms raises marine fish for sale in the aquarium trade. Each year, Percula obtains a batch of approximately one million eggs from a local supplier. Percula’s manager is trying to decide whether to use the farm’s facilities to raise Maroon Clownfish or Queen Angelfish. Clownfish eggs cost $5,500 per batch, while angelfish eggs cost $9,500 per batch. Due to differences in needs, only one species may be raised at a time and only one batch of fish can be raised in any 52-week period.
With current facilities, approximately 10 percent of clownfish eggs and 5 percent of angelfish eggs can be successfully raised to maturity. Clownfish take approximately 35 weeks to grow to a salable size, while angelfish take 50 weeks. Angelfish also require more care than clownfish. Each week, angelfish need two complete water changes and 20 feedings, while clownfish need only one water change and 15 feedings. Each feeding costs $150 and each water change costs $1,000. Heating and lighting costs equal $400 per week of rearing, regardless of which type of fish is being raised. Fixed overhead costs for the year amount to $80,000. Percula can sell clownfish for $4 each and angelfish for $10 each.
Required:
a-1. Calculate the operating income from raising clownfish and angelfish.
a-2. Which species should Percula raise to earn the highest operating income for the year?
- & d.Percula’s manager is considering the following improvements, each of which will cost an additional $8,000 for the year. Due to resource limitations, only one can be implemented.
- Purchasing a higher quality filter material that will significantly improve water conditions in the rearing tanks. The higher water quality will increase the survival rates to 12 percent for clownfish and 6 percent for angelfish. The need for water changes will also be reduced to one each week for angelfish. Due to the higher yields, feeding costs will increase to $160 each.
- Installing newer, more efficient equipment that will reduce heating and lighting costs to $300 per week of rearing. The new equipment will promote more stable conditions, increasing the survival rates of clownfish to 10.5 percent and of angelfish to 5.5 percent. The slight change in survival rates is not expected to increase feeding costs.
- Calculate the operating income from raising clownfish and angelfish with new filter material.
- Calculate the operating income from raising clownfish and angelfish with new heating and lighting.
iii. Which option do you think will be more beneficial and which fish species should be raised?
QUESTION 5
Blaster Corporation manufactures hiking boots. For the coming year, the company has budgeted the following costs for the production and sale of 30,000 pairs of boots.
Budgeted Costs Budgeted
Costs
per PairPercentage
of Costs
Considered
VariableDirect materials $ 630,000 $ 21 100 % Direct labor 300,000 10 100 Manufacturing overhead (fixed and variable) 720,000 24 25 Selling and administrative expenses 600,000 20 20 Totals $ 2,250,000 $ 75
Required:
- Compute the sales price per unit that would result in a budgeted operating income of $900,000, assuming that the company produces and sells 30,000 pairs. (Hint: First compute the budgeted sales revenue needed to produce this operating income.)
Assume that the company decides to sell the boots at a unit price of $121 per pair.
b-1. Compute the total fixed costs budgeted for the year.
b-2. Compute the variable cost per unit.
b-3. Compute the contribution margin per pair of boots.
b-4. Compute the number of pairs that must be produced and sold annually to break even at a sales price of $121 per pair.
QUESTION 6
Sonic Charge, is a newly organized manufacturing business that plans to manufacture and sell 60,000 units per year of a new product. The following estimates have been made of the company’s costs and expenses (other than income taxes).
Fixed Variable
per UnitManufacturing costs: Direct materials $ 25 Direct labor 15 Manufacturing overhead $ 500,000 8 Period costs: Selling expenses 2 Administrative expenses 300,000 Totals $ 800,000 $ 50
Required:
- What should the company establish as the sales price per unit if it sets a target of earning an operating income of $700,000 by producing and selling 60,000 units during the first year of operations? (Hint: First compute the required contribution margin per unit.)
- At the unit sales price computed in part a, how many units must the company produce and sell to break even? (Assume all units produced are sold.)
- What will be the margin of safety (in dollars) if the company produces and sells 60,000 units at the sales price computed in part a?
- Assume that the marketing manager thinks that the price of this product must be no higher than $60 to ensure market penetration. Will setting the sales price at $60 enable Ionic Charge to break even, given the plans to manufacture and sell 60,000 units?
Rubric: written assignment
Criteria Accomplished (A) Proficient (B) Partially proficient (C) Borderline (D) Fail (F) Problem identification The business issue has been correctly identified, with a competent and comprehensive explanation of key driving forces and considerations. Impact on company operations has been correctly identified. Thorough analysis of the issue is presented. The student correctly identified the issue(s), taking into account a variety of environmental and contextual drivers. Key case information has been identified and analyzed. The student correctly identified the case (issues), considering obvious environmental/contextual drivers. There is evidence of analysis, but it lacks depth. The student correctly identified the issue(s) but analysis was weak. An absence of context – the work is basically descriptive with little analysis. The student failed to correctly identify the issue(s); analysis was incorrect or too superficial to be of use; information was misinterpreted. Information gathering The student showed skill in gathering information and analyzing it for the purposes of filling the information gaps identified. Comprehensive and relevant. Relevant information gaps were identified and additional relevant information was found to fill them. At least two different types of sources were used. The student demonstrates coherent criteria for selecting information but needs greater depth. The student correctly identified at least one information gap and found relevant information, but which was limited in scope. Some evidence of sound criteria for selecting information but not consistent throughout. Needs expansion. An information gap was identified and the student found additional information to fill it. However, this was limited in scope. Weak criteria for the selection of necessary information. Information was taken at face value with no questioning of its relevance or value. Gaps in the information were not identified or were incorrect. Conclusions The student evaluated, analyzed, synthesized all information provided to create a perceptive set of conclusions to support the decisions and solutions. The student evaluated, analyzed and synthesized to create a conclusion(s) which support decisions and solutions. The student reached conclusions, but they were limited and provided minimal direction for decision-making and solutions. The conclusion was reasonable but lacked depth and would not be a basis for suitable strategy development. The student formed a conclusion, but it was not reasonable. It was either unjustified, incorrect or unrelated to the case in hand. Solutions The student used problem solving techniques to make thoughtful, justified decisions about difficult and conflicting issues. A realistic solution was chosen which would provide maximum benefit to the company. Alternative solutions were explored and ruled out. The student used problem solving techniques to make appropriate decisions about complex issues. Relevant questions were asked and answered. A realistic solution was chosen. Alternatives were identified, explored and ruled out. The student used problem-solving techniques to make appropriate decisions about simpler issues. The solution has limited benefit but does show understanding of implications of the decision. Alternatives were mentioned but not explored. The student used problem solving techniques to make decisions about simpler issues but disregarded more complex issues. Implications of the decision were not considered. Alternatives were not offered. The student formed a conclusion, but it was not reasonable. It was either unjustified, incorrect or unrelated to the case in hand.
RUBRIC
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points: Student failed to submit the final paper. 5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors 10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper. GET THIS PROJECT NOW BY CLICKING ON THIS LINK TO PLACE THE ORDER
CLICK ON THE LINK HERE: https://www.perfectacademic.com/orders/ordernow
Do You Have Any Other Essay/Assignment/Class Project/Homework Related to this? Click Here Now [CLICK ME] and Have It Done by Our PhD Qualified Writers!!