Need help in Cost Accounting Paper Analysis

Need help in Cost Accounting Paper Analysis
ACC207 – Cost Accounting Due on June 18th , 12AM CT Overview: Classifying a company’s costs allows for an in-depth analysis of the impact that changes in output have on revenues, costs, and net income or net loss. A cost-volume-profit analysis will be completed in order to determine the breakeven point. Relevant costs will be used to prepare a flexible budget. Additionally, an appropriate costing system should be selected and the choice should be substantiated with reasonable rationale. Finally, a memo should be prepared for management that summarizes the results of the quantitative analysis and makes recommendations for an optimal costing system to be ethically used by key decision makers. For Part Two Draft of Prepare and Perform (Section II): You will analyze the budget and actual costs using the MDE Manufacturing Budget (Tables I, II, III, IV). Determine where variances occurred and why. Submit the Student Workbook with Tabs 3 and 4 completed with your budgets/variances and a 1–2 page Word document that discusses the implications of your findings on MDE’s financial considerations. Explain which aspects of MDE’s budgeting process are in need of improvement and justify your response using your calculations. Address all critical elements listed below in Section II. Use Tabs 5 and 6 of the Student Workbook for your budget and variance calculations. For Part Three Draft of Main Costing Systems (Section III): You will make a recommendation to the MDE management team on whether the company should switch from process costing to activitybased costing (ABC) for the bird feeder division. This is an exploratory discussion, but management would like to know more about the differences between the two costing systems and if a different costing system might work better for the company. Submit a 2–3 page Word document that addresses all of the critical elements below of Section III. Notes: Please see other attached files for Part I paper and Workbook for more information. Please answer and follow this guideline to answer each sections. Please follow the guidelines/format for submission for each sections provided below. Please SEPARATE Section II to Section III for submission and if possible name it according to which Section it belongs. Thank you. Part II Draft of Prepare and Perform (Section II): Prepare and Perform a) What are your fixed costs? Segregate them in the budget model. b) Determine how variable costs change as activity measures change. How can this information be applied? c) Create the budget model, ensuring fixed costs are hard coded into the model (variable costs are stated as a percentage of the relevant activity measures or as a cost per unit of activity measure). d) Add actual activity measures to the model. Make sure all information is added accurately. e) Add the flexible budget calculations to the budget model. Make sure all information is accurate. f) Compare the flexible budget to the actual expenses. What does this inform? Be sure to discuss the following variances: i. Static budget variance, including sales volume and flexible budget variances ii. Price and efficiency variances for direct materials and direct labor iii. Spending and efficiency variances for variable manufacturing overhead g) Determine the aspects of the budgeting process that are in need of improvement. Justify your response. h) Interpret what budget variances represent. Should all variances be investigated? Guidelines for Submission: Paper must be submitted using the Student Workbook to present your budgets and variances and a 1–2 page Microsoft Word document with double spacing, 12-point Times New Roman font, and one-inch margins to explain your findings. Part III Draft of Main Costing Systems (Section III) III. Main Costing Systems – Activity-Based Costing vs. Process Costing a) Identify the cost allocation system that would benefit this company most. Justify your response. b) Does this cost allocation system meet management planning and control goals? Explain. c) What are the ethical implications that should be considered with this cost allocation system? d) Describe the ethical implications of direct costs versus indirect costs. What considerations should be made when selecting one of these two? Guidelines for Submission: Your paper must be submitted as a 2–3 page Microsoft Word document with double spacing, 12-point Times New Roman font, and one-inch margins.
Need help in Cost Accounting Paper Analysis
ACC 207 MDE Manufacturing Budget: Bird Feeder Sales and Manufacturing Expenses: Budget and Actual (2014) You will use this table to complete Milestones One and Two. Budget ($) Actual ($) Sales 1,050,000 991,700 Expenses Materials – Cedar 225,000 248,160 Materials – Plastic 37,500 37,741 Factory Worker Labor 300,000 332,760 Materials – Indirect 3,000 2,585 Factory Depreciation 78,000 78,000 Factory Utilities 12,000 12,000 Factory Maintenance and Repairs 5,000 4,500 Shipping ($2.25/each) 112,500 105,750 Sales Commissions ($2.00/unit sold) 100,000 94,000 Office Rent 12,000 12,000 Advertising 20,000 20,000 Liability insurance 5,000 5,000 Office Depreciation 1,000 1,000 Office Salaries 48,000 48,000 Total Expenses 959,000 1,001,496 Contribution Margin: Static Budget and Actual Results (2014) You will use this table to complete Milestone Two. Actual Results Static Budget Amount Units Sold 47,000 50,000 Revenues ($) 991,700 1,050,000 Manufacturing Costs ($) Variable 621,246 565,500 Fixed 94,500 95,000 Gross Margin 275,954 389,500 Standard Variable Manufacturing Costs (2014) You will use this table to complete Milestone Two. Static Budget Costs Standard Input Direct Materials: Cedar 225,000 3.0 ft/unit Direct Materials: Plastic 37,500 1.0 ft/unit Direct Manufacturing Labor 300,000 0.5 hrs/unit Variable Manufacturing Overhead 3,000 0.3 ft/unit Actual Variable Manufacturing Costs (2014) You will use this table to complete Milestone Two. Actual Costs Actual Input Direct Materials: Cedar 248,160 3.2 ft/unit Direct Materials: Plastic 37,741 1.1 ft/unit Direct Manufacturing: Labor ($) 332,760 .60 hr/unit Variable Manufacturing Overhead 2,585 0.25 ft/unit