BUACC 2613 â?? Management Accounting 1 Semester 2, 2012 Assignment Contribution to overall…

BUACC 2613 – Management
Accounting 1
Semester 2, 2012
Assignment
Contribution to overall assessment: 25%
Due date: ??

·
This
assignment has two equally weighted parts:
o
Part 1 –
Technical
o
Part 2 –
Essay( 1500 – 1800 word)

·
The
assessment criteria are on p. 4.

·
Your work
must comply with the University’s General Guide for the Presentation of
Academic Work..ballarat.edu.au/current-students/publications,-policies-and-forms/general-guide-for-the-presentation-of-academic-work”>http://www.ballarat.edu.au/current-students/publications,-policies-and-forms/general-guide-for-the-presentation-of-academic-work

·
This is a group-assignment. Each
group needs to have 2 to 3 members in it. Please organise yourselves into
groups.
·
Please make
sure that names and ID numbers of all members are stated on the cover sheet of
your submission.

·
As this is a group assignment, each member of a group is awarded the
same mark. Working in groups has its
pros and cons. I am sure that you will hold constructive and energetic group
discussions on the issues at hand. In
case of any disagreements, you will be able to resolve them in a democratic and
rational way. There will be times when you may have to agree to disagree with
each other. Invariably different group
members bring different skills to a project; it is up to you to make the best
of it. I believe one can learn a lot by discussing the issues with one’s
colleagues.

·
If you happen to find your group members are “not pulling their weightâ€
or there are problems with any member’s commitment, then please try to resolve
those issues amongst yourselves. Open
and honest communication always helps.
If you are unable to resolve these issues, you are most welcome to see
me and we will try to sort out the problems together. Do this as soon as
possible and certainly before the due date.[ Please
adapt this to suit your group]
PART 1:Consider
the following data in preparing Ballarat Furniture Company’s budget for 2013:

Product
specification for each table for 2013

Direct
Materials

Particle Board (PB)

9 board feet (bf)per
table

Red Oak (RO)

10 board feet (bf)
per table

Direct
Manufacturing Labour

Laminating labour

0.25 hours per table

Machining labour

3.75 hours per table

Inventory
information for 2013

Beginning Inventory

Target Ending
Inventory

PB

20,000 bf

18,000bf

RO

25,000 bf

22,000 bf

Finished
goods – tables (units)

5,000

3,000

Sales
forecast for 2013

Sales
volume

52,000 tables

Sales
price

$392 per table

Cost
information:

2012

2013

PB
per board feet

$3.90

$4.00

RO
per board feet

$5.80

$6.00

Laminating
labour per hour

$24.00

$25.00

Machining
labour per hour

$29.00

$30.00

Variable
manufacturing overhead costs

$1,900,000

Fixed
manufacturing overhead costs

$1,600,000

Manufacturing
overhead application base

Expected Direct Labour
hours

Inventoriable(manufacturing)
cost per table

$275

In
addition to the above, the following selling and administrative expenses are expected
for 2013:

Salaries
of Sales personnel

$555,760

Marketing

$1, 920,720

Distribution

$729,600

Customer
service

$504,992

Administrative

$440,768

Required:

Prepare
an annual budget for Ballarat Furniture Company for 2013. Assume an income tax
rate of 40 percent. Include the following schedules:

a.
Sales budget
b.
Production
budget (in units)
c.
Direct
materials usage budget (in units and in
dollars)
d.
Direct
labour budget
e.
Budgeted
income statement.

PART
2

Go
to:

·
.ssrn.com/sol3/papers.cfm?abstract_id=321520″>http://papers.ssrn.com/sol3/papers.cfm?abstract_id=321520

·
.bbrt.org/beyond-budgeting/bb-problem.html”>http://www.bbrt.org/beyond-budgeting/bb-problem.html

·
Two readings on Budgeting posted on Moodle.

Critically review the above. Do you agree, partly agree or disagree with
the issues raised in the above? Discuss your reason (s) for doing so. You need to support your viewpoint with
carefully chosen and authoritative evidence.