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Prepare a Business Report as if for senior management critically evaluating the purpose of variance

QUESTION 1 Job costing A. Create a spreadsheet solution to the following problem. Follow the template provided. Play the Job cost podcasts and work through the example problem in those podcasts. Design your spreadsheet to meet the assignment requirements set out above. In particular, check the spreadsheet requirements and the spreadsheet advice PDF. B. Distinguish between job costing and process costing. Give your own examples. QUESTION 2 Process costing Prepare a spreadsheet to solve the following process costing problem. Review the four process costing videos provided in Interact Resources. Note that in the situation QUESTION 3 Joint costing - decision making Create a spreadsheet to solve the following joint cost problem. Joint cost allocation: additional processing beyond split-off point In a certain production process 100 000 kg of a single raw material were processed at a cost of $250,000. At split-off two intermediate products, A and B emerged, weighed as 60,000 kg of A and 40,000 kg of B. A was processed further at a cost of $45,000 to produce C, and B was processed further at a cost of $25,000 to produce D. C sold for $4.50 per kg. Required: (a) If A was allocated $187,500 of the joint production costs under the net realisable value method, what was the selling price of D? (b) Suppose the firm receives an offer to buy all of product A for $2 per kg at the split-off point. Would the firm be better off selling A or processing further to produce C? By how much? Question 4 Variance analysis Borg Ltd has set up the following standards for material and labour: Materials: 10 kg @ $6 Direct labour: 1 hr @ $20 During a month 19,500 units were produced, 197,000 kg of material were used and 20,100 hours of labour were worked. 220,000 kg of materials were purchased for $1,364,000. Required: (a) Calculate the materials price variance (on purchase) and materials usage variance. (b) If the total direct labour variance was $1,950 unfavourable, what was the actual direct labour rate per hour? (c) Journal entries to record these facts. A. Answer the requirements using a spreadsheet. Include the IF function to determine Favourable and Unfavourable variances. B. Prepare a Business Report as if for senior management critically evaluating the purpose of variance analysis, why the materials price variance should be calculated on purchase, other areas in an organisation where variance analysis would be useful and the practical relevance of detailed overhead variance analysis. See the reading by Murray Wells. Search the CSU library for the ACC512 readings. Suggested word limit about 500 words. Ensure that your answer is in business report format. Read the following online references regarding business report writing. http://bit.ly/FoBAcademic-Writing-Skills and http://unilearning.uow.edu.au/report/4b.html QUESTION 5 Budgeting Write a business report describing budgeting as a non technical process. Refer to satisficing, budgeting as a political process and budget ploys. Give examples. About 500 words excluding references. Use the Internet as a reference AND refer to relevant academic research papers. See the text page 249/"

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