4.3. Budgeting and budgetary control
A subsection of Accounting, 9706, through 4. Cost and management accounting (A Level)
Listing 10 of 159 questions
B Limited is a manufacturing business. The business uses marginal costing techniques and manufactures three products, Ess, Tee and Ewe. The following budgeted monthly information is available. Per unit Ess Tee Ewe $ $ $ Selling price Direct material Direct labour at $8 per hour Variable overhead Maximum monthly demand 300 units 400 units 360 units Fixed overheads are budgeted to be $96 000 per annum. REQUIRED Calculate the contribution per unit for each product. Prepare a statement to show the maximum monthly contribution and maximum monthly profit that B Limited can earn. Calculate the monthly direct labour hours that B Limited requires to meet the budgeted maximum monthly demand. Additional information Due to a shortage of skilled labour, the directors are aware that only 900 direct labour hours per month will be available from 1 December 2021. REQUIRED Calculate the maximum contribution and maximum profit for December 2021, taking into account the limited direct labour hours available. Additional information In order to overcome the shortage of skilled labour and also be able to meet maximum demand, the directors are considering paying an overtime premium of 25% and paying a total monthly bonus of $200 to be shared between all workers. REQUIRED Calculate the total contribution and total profit for the month of December 2021 if the directors decide to carry out this proposal. Explain two disadvantages to a business of offering a bonus payment to its employees. Explain two disadvantages to a business of operating a system of budgetary control.
9706_w21_qp_21
THEORY
2021
Paper 2, Variant 1
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M Limited manufactures and sells two different colours of paint. The following actual information is available for last year. red paint $ blue paint $ total $ revenue 350 000 150 000 500 000 direct materials and labour 180 000 65 000 245 000 allocated fixed overheads 110 000 88 000 198 000 profit / 60 000 (3 000) 57 000 The company is considering closing the blue paint department and using the extra space to increase revenue in red paint by 20%. Variable costs will increase in the same proportion as the increase in revenue. What would be the change in the total profit if this action is taken?
9706_s22_qp_13
MCQ
2022
Paper 1, Variant 3
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Questions Discovered
159