Section B
(i) Product B and Product C.
Product B Product C
Direct material cost per unit £60 £80
Direct Labour cost per unit £35 £55
Machine Hours per unit 5 7
The company expects to produce 1,000 of Product B and 1,500 of product C. The manufacturing overhead costs were budgeted at £155,000 with budgeted machine hours of 10,000. Rivers Limited allocates the manufacturing overhead costs on the basis of machine hours. The actual overhead costs were £185,000.
(iii) Product D.
£/unit
Sales (units) 1,000
Selling Price 60
Direct Material 10
Direct Labour 15
Variable overheads 5
Fixed production overheads 6,000
Fixed administrative costs 2,000
Budgeted and actual output and sales were as expected.
Requirements: Section B
As a new team within the Management Accountant department at Jennifer Ltd, the CFO has asked you prepare a report for the next board meeting. The report should:
1. Advise the management of See-It-now Ltd on the most suitable method that should be used in their company when accounting for the requirements in Section (A1). (30 marks)
2. Advise See-It-Now Ltd about the requirements in Section A2. (20 Marks)
3. Calculate the total cost per unit of Product B and Product C under the traditional costing system. (5 marks)
4. The CFO is keen to find out if an over or under absorption of overhead had taken place for Products B and C. Discuss this and provide evidence. (5 marks)
5. With the information provided for Product D, calculate the profit for the period using the absorption costing and the marginal costing approach and discuss the difference between these two approaches (20 marks).
10 marks for presentation and structure of your reports
(Total 100)
Special note: You are advised to use academic sources to support your arguments. Please make full reference to any sources you use since failure to do so may be regarded as plagiarism and would imply severe consequences. Please refer to the Referencing section below for more information and advice.
Assignment instructions
Structure
You have been asked to produce a report. It should contain the following:
• Title Page, including the given title in full.
• Abstract (No more than 50 words)
• Contents Page
• Introduction
• Main body, which should also be organised under appropriate headings.
• Conclusion & recommendations
• Appendices, which should be numbered.
o Make sure you refer your reader to them as required.
• Word count; excluding appendices and references list.
Presentation
Your work should be word processed in accordance with the following:
• Font style, Times New Roman, font size 12
• 1.5 line spacing.
• The page orientation should be ‘portrait’
• Margins on both sides of the page should be no less than 2.5 cm
• Pages should be numbered
• Your name should not appear on the script.
Your student number should be included on every page
Skills advice
Refer to your material provided in your skills modules to make sure that you have conformed to academic conventions. Pay particular attention to:
• Your introduction,
• Your conclusion,
• The use of headings and/or signpost words
• Paragraph structure
Do refer to
Referencing
The university expects students to use Harvard referencing as specified in the book Cite them Right.
• Refer to support/harvard.htmfor further advice and a link to an online version of Cite them Right
• You should be careful to include citations within your work as well as a reference list at the end. Unreferenced work will fail.
Word count
Your word count should not include your abstract, contents, references list or appendices. You should provide your word count at the end of your report.
Exceeding the word count by more than 10% will result in a penalty of 10% of your marks for your work.
If your work is significantly shorter, then you will probably have failed to provide the level of detail required.
Submission to Turnitin of work submitted for assessment
Our policy on the use of Turnitin recognises the educational desirability that all of our students should enjoy the opportunity to self-submit their work to Turnitin (before submitting for assessment). We also recognise that Turnitin Originality Reports will sometimes assist in the identification of plagiarised work submitted for assessment.
Work that is submitted to Turnitin generates a Turnitin originality report, showing which parts of it have been reproduced from which sources. The system compares submissions to material that is to be found: on the world-wide web; in its database of previous submissions; and in its growing number of databases of published articles. You should not assume that a Turnitin originality report with a low similarity index is evidence that the piece of work concerned is free from plagiarism.
Our policy provides that a Module Leader may decide, in accordance with the policy of School of Business and Law, that all student submissions for a particular component of assessment should be submitted to Turnitin, provided that the relevant Module Guide includes a notice to that effect.
Notice is hereby given that all submissions of reports for this Module must be submitted to Turnitin. Detailed guidance on how to submit your work to Turnitin will be made available on this Module’s Moodle site.
If you fail to submit your report to Turnitin, in accordance with the guidance on the Moodle site, you will be awarded a mark of 0 for the component.
Please submit your work to the right Turnitin link. Submission to a wrong link may result in the work being awarded a mark of 0. Moreover, wrong submission could lead to very high similarity index when the student corrects it later, which again might imply severe consequences.
If you have any questions about Turnitin, you should go to “Frequently Asked Questions” at httpk/faqsearch.php?sol=turnitin. If you have any further questions, please email the Head of Student Compliance and Responsibilities,
Submission
The material that you submit to Turnitin will be marked. The deadline applies so you are advised not to submit after 11.00p.m, because it could take some time for your submission to upload, and the delay could cause the work to be received after 11.59. A late submission will receive a mark of 0.
Please be aware that the Turnitin site will advise you that late submissions are accepted. This is only for the purposes of allowing students who are claiming extenuation to submit their work.
Please read the material in the submission folder and make sure that you attach the feedback sheet as requested and save the document using the format for the name of the document as specified.
Assessment criteria
Advise the management of See-It-now Ltd on the most suitable method that should be used in their company when accounting for the requirements in Section A1 30 marks
Advise the management of See-It-Now Ltd on the most appropriate of dealing with the requirements is A2 20 marks
Calculate the total cost per unit of Product B and Product C under the traditional costing system 5 marks
The CFO is keen to find out if an over or under absorption of overhead had taken place for Products B and C. Discuss this and provide evidence. 5 marks
With the information provided for Product D, calculate the profit for the period using the absorption costing and the marginal costing approach and discuss the difference between these two approaches. 30 marks
Presentation and structure 10 marks
Total 100 marks
Grading criteria used to assess work
These give you an overview of the required standard, although not all the criteria would apply to each assessment task.
General guidelines for standards expected at different levels of study.
Grade Level 4 Level 5
First
(70% or above) Thorough understanding of relevant ideas. Clear and well referenced argument. Coherent structure. Ideas critically analysed. Argument is clear, succinct and well supported. Evidence of a wide range of reading and some independent thought.
Upper Second
(60-69%) Sound understanding. Well written and relevant argument. Appropriately referenced. Critical consideration of relevant ideas. Arguments are precisely defined and appropriately referenced. The work is structurally sound and well written.
Lower Second
(50-59%) Evidence of understanding and independent reading. Adequate referencing, but some unsubstantiated material. Weaknesses in spelling, structure & grammar. Reasonable understanding of the relevant concepts, but some inconsistencies in application. Arguments are referenced, but disjointed. Poor structure, spelling or grammar.
Third
(40-49%) Indication of some understanding, but poor application of ideas. Minimal referencing. Generally weak structure. Generally descriptive work with limited evidence of a critical consideration of ideas. Inadequate referencing. Weaknesses in structure, spelling and grammar.
Fail
(below 40%) Irrelevant or poorly analysed material. Indication of weak grasp of concepts. Inadequate structure. Poor grammar and spelling. Uncritical. Poorly referenced. Argument indicates little use of relevant literature. Chaotic structure and generally badly written.
Extenuating circumstances
Extenuating circumstances are circumstances which:
• impair your examination performance in assessment or reassessment, or
• prevent you from attending for assessment or reassessment, or
• prevent you from submitting assessed or reassessed work by the scheduled date
If you need to apply for extenuating circumstances please doc