Moscow Institute of Management and Law
Task 1
The Company "Window on the World" is engaged in manufacturing and installation of glass (window frames made of plastic for individual orders). In the structure of the company more services: assembly shop, department setting (its employees work in customer homes and offices) and the administration (including commercial service). Expenditures of the company can be grouped as follows:
depreciation of production equipment in the assembly shop;
Insurance of industrial premises;
window profile (design for manufacturing plastic frames);
various types of glass;
wage assembly shop supervisors and department setting;
salaries of the administration;
the cost of organizing communication (telephone, internet, postage);
designers compensation (royalties) in the form of a percentage of the value of orders applicable models;
advertising costs;
wages department assembly department and installation;
depreciation of office equipment;
catering staff administration and assembly shop;
acquisition costs of special tools (instruments), auxiliary materials and office supplies for all services of the company;
rental of industrial and office space.
Required: to classify costs (fixed-overhead, production and non-production) for the purposes of
1) The calculation of unit costs;
2) the cost of the operation of each service.
Task 2
Auditing firm "Gamma-Audit" has the following services: general audit, legal advice (UK), the valuation of assets. Production estimate each expert is conducted on the basis of hours of time spent within each specific contract with the client (hours).
The management accounting are three center operating costs, corresponding to the three main activities.
The following assessment indicators in the next quarter:
UK Audit Evaluation
The number of specialists, persons 15 4 June
Number of occupied rooms 3 3 2
The volume of customer-hours 7600 3100 1800
Overhead amount, thousand rubles .:
Fixed salary (with deductions) professionals:
Auditors 990
450 lawyers
Valuators 246
Rents (including all utilities) 300
Employee Benefits Administration 750
Other expenses (stationery, printing) 60
Currently, the company chooses the method of allocation of overhead costs for the purposes of pricing in the future on the basis of calculations for the next quarter.
Required:
Calculate the next quarter flat rate allocation of overhead costs, prior informed choice of a single allocation base.
Prepare a statement of overhead allocation and to calculate the rate of their distribution in each cost center.
Discuss the advantages and disadvantages of the two approaches to the allocation of overhead (single rate and single rate for units), referring to the auditing company "Gamma-audit". What behavioral conflicts in the organization may entail the use of a particular method?
Activity 3
The production company uses a system of process costing. A processional September 200__ include the following information:
Work in progress at the beginning of the period 100 units. with the degree of readiness of 40% including:
the cost of basic materials 17400 den.ed
the added cost of 10,000 monetary units
Finished products 8,200 units.
manufacturing costs:
the total cost of materials 162,600 monetary units
the cost of processing 173 920 monetary units
Work in progress at end of period 800 units., Finished at 20%.
While there is no loss, but all products are transferred to the next processing. All materials are introduced at the beginning of the process, and the processing cost is added uniformly throughout the process.
Required:
a) prepare a report on the production of conventional units with the issue and to determine the cost per unit for the month;
b) the specific standards of the costs used in the preparation of budgets for September 200 ___