RECENT ASSIGNMENT

Student Number: (enter on the line below)
Student Name: (enter on the line below)

HA2011
MANAGEMENT ACCOUNTING
FINAL ASSESSMENT
TRIMESTER 2, 2021
Assessment Weight: 50 total marks
Instructions:
• All questions must be answered by using the answer boxes provided in this paper.
• Completed answers must be submitted to Blackboard by the published due date and time.
Submission instructions are at the end of this paper.
Purpose:
This assessment consists of six (6) questions and is designed to assess your level of knowledge of the key topics covered in this unit.

There are 6 questions in the Tutorial Assignment. Once the assignment available, you will have 24 hours to finish and submit it. Each week students were provided with similar case studies and situational questions of varying degrees of difficulty. These tutorial case studies and guide questions are available in the Tutorial Folder for each week on Blackboard. The Interactive Tutorials are designed to assist students with the process, skills and knowledge to answer the provided tutorial questions. Your task is to answer a selection of tutorial questions covered over Week 2 to Week 11 inclusive.
It is important when you answer the questions, you do not just copy and paste the answers from other sources, but rather, try to paraphrase it and provide reference (in- text referencing) to your answers. All references must be listed appropriately at the end of the report using Harvard referencing style. References provided must follow Reference Requirement detailed on page 6.
In this assessment, you are given 6 questions under cases/scenarios where you will apply economic concepts to support your recommendations.

Question 1 (7 marks)
a) Cite and discuss two (2) types of information a management accountant can provide to assist management in a business that considers product quality to be of key strategic importance. (2 x 2 = 4 marks)
b) Interpret and explain what is meant by the phrase “different costs for different purposes”. (3 marks)
ANSWER: ** Answer box will enlarge as you type
Question 2 (11 marks)
The State Library of South Australia has incurred the following costs in its Loans Department over the last 6 months of Financial Year 2020-2021.
Month Number of Loans Total Cost
Jan 4900 $ 76,200.00
Feb 5300 $ 87,000.00
Mar 6200 $ 90,000.00
Apr 4800 $ 78,100.00
May 5050 $ 80,700.00
Jun 3700 $ 75,000.00
a) Estimate the monthly fixed cost and the variable cost per loan (up to 2 decimal places) using the high-low method. (2 x 2 = 4 marks)
b) State the cost equation for State Library of South Australia. (1 mark)
c) Estimate the cost for Dec if the forecasted loans is 4850. (1 mark)
d) Cite the advantage(s) of using the High Low Method. (2.5 marks)
e) Identify possible drawback(s) of using the High Low Method. (2.5 marks)
ANSWER:
Question 3 (11 marks)
a) Ali and Johan are best friends who used their savings and all the monetary gifts they received during graduation to start their own business manufacturing different kinds of facemasks, given the high demand. “We don’t need a product costing system. We are a small manufacturer with a just in time approach so our inventories are minimal. We have no influence over the product price; whatever the big manufacturers do, we follow. Our accountant only comes in during Fridays and she is already far too busy to bother with a product costing system.” Is this a reasonable attitude? Explain why. (5 marks)
b) For each type of service organisation (Professional Service Firms, Service Shops, and Mass Service Entities):
i) Identify the key features and give an example of a service company most likely to fall in each category. (1.5 x 3 = 4.5 marks)
ii) ii) Describe the type of costing system that is most appropriate for each type of service organisation. (0.5 x 3 = 1.5 marks)

ANSWER:
Question 4 (7 marks)
Hunter Cellars produces and sells bottles of wine. Price and cost data are in the table below:
Selling Price per bottle $ 37.50
Variable Costs per bottle
Direct Material $12.30
Direct Labour $6.00
Manufacturing Overhead $9.00
Selling Costs $2.40
Total VC per bottle $29.70
Annual Fixed Costs
Manufacturing Overhead $432,000.00
Selling and Administrative $621,000.00
Total FC $1,053,000.00
Forecast annual sales 140,000 units $5,250,000.00
Ignoring income taxes, calculate the following:
1. What is Hunter Cellars’ break-even point in units? (1 mark)
2. What is the company’s break-even point in sales dollars? (1 marks)
3. If Hunter Cellars has a target profit of $570,000.00 how many bottles of wine would it have to sell? (2 marks)
4. Calculate the company’s safety margin and interpret what that number means. (3 marks)
ANSWER:
Question 5 (7 marks)
Harry’s Pies currently makes the crust in-house for the various pies it sells at its stores. It uses 60,000 crusts annually in the production of its bestselling pies. The costs to make the crusts are:
Materials $ 0.23 per crust
Labour $ 0.35 per crust
Variable Overhead $ 0.25 per crust
Fixed Overhead $ 0.27 per crust
A nearby bakery has offered to sell the crusts for $0.85 each to Harry’s Pies. If the crusts are purchased, 30% of the fixed overhead could be avoided.
a) Calculate the relevant costs for Harry’s Pies if it continues to make its own pies. (2 marks)
b) Calculate the relevant costs for Harry’s Pies if it purchases from the nearby bakery. (2 marks)
c) If Harry’s Pies accepts the offer, calculate the effect on profit. (2 marks)
d) Should Harry’s Pies accept or reject the bakery’s offer? (1 mark)
ANSWER:
Question 6 (7 marks)
Boysen Industries manufactures outdoor paints used for the facade of high rise buildings. The company plans to introduce a new paint variant that is able to withstand harsh weather conditions. The new paint is made by combining Protein D with a solution (Salcomb) which will be heated to boiling point and thereafter, the colouring agent (Texta) is added. The resulting paint will be packaged in 10 litre containers. The initial mix, which is 11 litres in volume, consists of 15 kilograms of Protein D and 8 litres of Salcomb. A reduction in volume by 1 litre happens during the boiling process. The resulting solution is cooled slightly before 3 kilograms of of Texta are added. Texta evaporates so it does not affect the final liquid volume.
The purchase prices of the raw materials used in the manufacture of the new paint variant are as follows:
Protein D $2.90 per kilogram
Salcomb $3.50 per litre
Texta $5.80 per kilogram

Determine the standard material cost of a 10 litre container of the new paint for Boysen Industries. (7 marks)
ANSWER:
END OF FINAL ASSESSMENT
Submission instructions:
• Save submission with your STUDENT ID NUMBER & UNIT CODE e.g. EMV54897 HA2011
• Submission must be in MICROSOFT WORD FORMAT ONLY
• Upload your submission to the appropriate link on Blackboard
• Only one submission is accepted. Please ensure your submission is the correct document.
• All submissions are automatically passed through SafeAssign to assess academic integrity.
Reference requirements
Assessment Design – Adapted Harvard Referencing
Holmes will be implementing as a pilot program a revised Harvard approach to referencing. The following guidelines apply:
1. Reference sources in assignments are limited to sources which provide full text access to the source’s content for lecturers and markers.
2. The Reference list should be located on a separate page at the end of the essay and titled: References.
3. It should include the details of all the in-text citations, arranged alphabetically A-Z by author surname. In addition, it MUST include a hyperlink to the full text of the cited reference source.
For example;
P Hawking, B McCarthy, A Stein (2004), Second Wave ERP Education, Journal of Information Systems Education, Fall, http://jise.org/Volume15/n3/JISEv15n3p327.pdf
4. All assignments will require additional in-text reference details which will consist of the surname of the author/authors or name of the authoring body, year of publication, page number of content, paragraph where the content can be found.
For example;
“The company decided to implement a enterprise wide data warehouse business intelligence strategies (Hawking et al, 2004, p3(4)).”

Non-Adherence to Referencing Guidelines
Where students do not follow the above guidelines:
1. Students who submit assignments which do not comply with the guidelines will be asked to resubmit their assignments.
2. Late penalties will apply, as per the Student Handbook each day, after the student/s have been notified of the resubmission requirements.
3. Students who comply with guidelines and the citations are “fake” will be reported for academic misconduct.