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Managerial Accounting

Managerial Accounting
Project instructions:
Managerial Accounting ACC 220
Assignments are key instruments of learning. Each assignment you undertake is designed to help you develop and integrate your learning from this module. Assignments require you to think about some of the key concepts in ACC220 and build your own framework of understanding about them.
Talking with the professor will help you to plan and complete your assignments and also help you to check your understanding of what is required. It is important to note that the professor will not tell you the answers but will comment on your ideas and suggestions. This exchange of ideas will be useful in providing guidance in your future study in this module. Office hours are available for this sole purpose, so please make the most of them.
Your mark in the assignment will give you a benchmark for how well you are doing in this course. It is rewarding to do well and you should strive to do as well as you can. However, if you do not get a good mark, take it as an opportunity to learn what went wrong rather than seeing it as a disaster. Most people learn more from mistakes than from doing well all the time. If you do not understand why you got the mark you did, you are entitled to go back to your professor and ask for a further explanation.
Practical information
This booklet presents the purpose and requirements of each assignment in detail. You should refer to this before starting your assignment and contact the professor if there are problems or if there is anything that you do not understand. There are several general points I will be looking for when marking your assignments, namely that you have:
o read and understood the question being asked and followed the guidance provided
o appreciated and understood the content of the material covered in the relevant unit
o applied academic concepts from the relevant ACC220 module material
o been able to collect and present relevant information to answer the questions asked in the assignment
Your tutor will also be looking at the clarity and rigour with which you have assembled your ideas and presented your arguments.
Good writing is a key skill for business, so being able to express yourself clearly and succinctly is important. Working at improving your skills in arguing a case is worth doing not only because it will help you gain higher marks, but also because the struggle to write well will help you learn the ideas presented in this module.
Question 1
QD Ltd is a company which manufactures and sells a single product which has the following cost and selling price structure:
?/unit ?/unit
Selling price 240
Direct material 44
Direct labour 72
Variable overhead 28
Fixed overhead 24 168
Profit per unit 72
The fixed overhead absorption rate is based on the normal capacity of 4,000 units per month. Assume that the same amount is spent each month on fixed overheads. Budgeted sales for next month are 4,400 units.
You are required to calculate:
(I) The breakeven point, in sales units per month and in sales value
(II) The margin of safety for next month
(III) The budgeted profit for next month
(IV) The sales required to achieve a profit of ?192,000 in a month. [20 marks]

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