Overview
- Name your file ONLY (First name and Family name)
- 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.
Assignment Questions:(Marks 15)
- Veenus Toys makes metal and plastic toys in separate departments.It has two support departments, Accounting and Information Systems.Veenus has decided to allocate Accounting department costs based on the number of employees in each department and Information Systems costs based on the number of computers in each department.Given the information below, use the Step Down Method to allocate support department costs.(5 Marks)
- A process that yield one or more products is called a joint process and the products so produced are called joint products. The cost of such process is called joint cost. This joint must be allocated among the joints products to determine the final cost of each product. There are four methods of allocating this cost.
- Prepare Flexible budget with three levels of sales volumes. Sales in units at three levels, selling price per unit, variable cost per unit and the fixed cost are to be assumed by yourself.(5 Marks)
| Support Dep'ts | Operating Departments | Total | |||
| Acc-ounting | Info Systems | Plastic Products | Metal Products | ||
| Total department costs | $32,000 | $48,000 | $300,000 | $200,000 | $580,000 |
| Number of employees | 3 | 6 | 9 | 12 | 30 |
| Number of computers | 6 | 8 | 10 | 16 | 40 |
You are required to illustrate only one of these methods with suitable numerical example.(5 Marks)