MGT 301 SEU Leadership Styles and Behaviors Management Paper

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Assignment Question(s):
10)
(Marks
Q1. State the reasons for allocating support department costs to the operating department.
What are its various methods? Provide numerical examples of any two methods and discuss
how these methods could be used to allocate these costs?
(CH
8, 2.5 Marks)
Answer:
Q2. Z&C has two support departments, A1 and A2, and two operating departments, B1 and
B2. Z&C has decided to use the direct method and allocate variable A1 dept. costs based on
the number of transactions and fixed A1 dept. costs based on the number of employees. A2
dept. variable costs will be allocated based on the number of service requests and fixed costs
will be allocated based on the number of computers. The following information is provided:
(CH 8, 2.5 Marks)
Support Departments
Operating Departments
A1
A2
B1
B2
Total Department variable costs
5,000
6,000
38,000
21,000
Total department fixed costs
5,800
11,000
42,000
18,000
Number of transactions
15
18
80
45
Number of employees
5
7
15
12
Number of service requests
12
7
15
10
Number of computers
6
8
10
12
Allocate variable and fixed costs.
Answer:
Q3. JTC Corporation is a metal product manufacturer that produces three products: A, B,
and C. The joint costs of the three products in 2018 were SAR 50,000. The total number of
units for each product and the selling price per unit are given below:
(CH
9, 2.5 Marks)
Product
Units
Selling Price per unit
A
20,000
SAR 6
B
12,500
SAR 5
C
7,500
SAR 4
Using the physical volume method and sales value at the split-off method, allocate the joint costs
to each product.
Answer:
Q4. ABC Ltd. is preparing a budget for 2018. Following are the information related to
budget preparation:
(CH
10, 2.5 Marks)
Budgeted selling price per unit
=
SAR 200 per unit
Total fixed costs
=
SAR 250,000
Variable costs
=
SAR 65 per unit
Required:
Prepare flexible budget for 2,000, 2,500, 3,000 and 3,500 units.
Answer:

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