[SOLVED] Standard Cost Card | essaysclick

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Standard Cost Card

Clinton Ltd is a small manufacturing company producing and distributing farming equipment and tools for agricultural and farming industries and customers. One of Clinton’s products is known as ‘Product A’. The standard cost card of Clinton’s Ltd for Product A is shown below.

 

Clinton Ltd – Standard Cost Card
Product A
(Currently attainable standards)

 

 

 

 

 

Description
Quantities and prices Unit
£
Direct materials

Direct labour

Fixed overhead 3.00 litres @ £2.50 per litre

1.50 hour @ £11.00 per hour

£12.00 per unit produced 7.50

16.50

12.00
36.00

48.00
12.00

Standard total unit cost: Standard selling price:
Standard unit gross profit:

 

Other information:

The fixed overhead absorption rate is based on a consistent monthly production of 550 units.

 

Actual trading results for April 2022 are:

Actual Trading Results (April 2022)

£

£
Sales (for 550 units sold)

Direct materials (for 1,925 litres consumed)

3,850 27,500
Direct labour (1,100 hours recorded) 9,900
Fixed overhead (550 units produced) 5,500
Cost of sales: (19,250)
Gross profit: 8,250

Clinton Ltd
Required:

1. Prepare a detailed analysis of the variances from standard that will reconcile expected (standard) and actual profits for the most recent trading period. (Show all workings)

2. Explain the results of your detailed variance calculations and the possible causes for each variance.

Continued:

For the year ended 30th April 2022, Clinton’s business sales turnover was £132,800 producing a gross profit of £31,550 (gross profit margin = 23.76%)

Other relevant information:

Opening
inventory
£ Closing
inventory
£
Direct materials 1,450 2,000
Work-in-progress 3,000 3,500
Finished goods 6,000 7,500

 

▪ The total cost of raw materials consumed was £11,450.

▪ The cost of direct labour was £50,000 and total production prime cost was £69,450 (after deducting direct expenses).

▪ Indirect production overheads were £26,000 and machinery depreciation was
£7,800.

▪ Indirect non-production overheads, including £4,200 depreciation of office computers were £20,250.

Required:

3. Prepare the manufacturing account of Clinton Ltd for the year ended 30th April
2022 (Show all workings).

 

4. Prepare the Income Statement of Clinton Ltd for the year ended 30th April 2022 to calculate ‘net operating profit’ and ‘net profit margin’. (Show all workings).

 

Continued:
One of the products that Clinton Ltd manufactures is known as Product (B). Unit cost and revenue data for the product is provided below.

£
Selling price 35.00
Variable costs 14.00
Contribution 21.00

Fixed costs are £66,500 per month.

Last month the business produced and sold 6,090 units. This activity level represents
70% of current production capacity.

Required:
5. Calculate:

a. The contribution / sales ratio (C/S %)

b. The product break-even point (in units and £s sales)

c. The level of sales (in units and £s) required to produce profits of £45,000

 

d. The current production capacity (in units)
e. The margin of safety (in units and £s)

f. The total business profits if all spare capacity were to be sold for £15.15 per unit

 

Show all workings.
Continued
Clinton Ltd is tendering for two contracts. Details of the contracts are shown below.

Contract Contract 1 Contract 2
Units required 400 350
Unit price (customer expected) £35.00 £40.00

You have examined the contracts and resource requirements and have established the following:

Contract

Prime cost resource requirements: Contract 1 Contract 2
Direct materials (contract totals) Direct labour
Direct expenses £1,300

90 hours

200 machine hours £2,000

150 hours

180 machine hours

Activity-based production overhead resource requirements:

Production runs 1.50 2
Test events 30 50
Materials movements 200 250

Other information:

▪ Direct labour is paid at £11.00 per hour.

▪ Direct expenses are calculated at £4.00 per machine hour.

▪ Activity-based production overhead resource requirements are calculated using the table provided below:

 

 

 

 

 

 

 

Activity cost pool Period Cost
(£)
Cost driver Driver volume
Production scheduling and set – up Product testing (quality control) Raw materials handling Depreciation
Other costs 2,400
12,000
45,000
15,000
5,600 Production runs Number of test events Materials movements Machine hours
Labour hours 200
1,500
4,500
3,000
800
80,000

Total period production overheads:

 

Required:

6. Calculate the recovery rates for the production overheads of Clinton Ltd using the
ABC system.

7. Calculate the prime costs of the two contracts described.

8. Calculate the full production costs of the two contracts described based on ABC
method.

 

Show all workings.
Continued:

Clinton Ltd usually calculates selling prices by adding a 65% profit mark-up to total cost.

Required:

9. Explain, with reasons and appropriate workings, whether the contract tenders are likely to be successful (from a financial viewpoint only).

Continued:

Clinton Ltd is considering two capital investment opportunities, which will require the purchase of a new machinery, but only have the finance for one of them. The details relating to the investment projects are as follows:

Initial cost of machine
Project A £150,000
Project B £80,000

Both projects are estimated to last for four years, and the estimated disposal/residual values of the machines are as follow:

Residual asset value
Project A £9,000
Project B £4,000

The estimated cash inflows are summarised in below:

Years Project A Project B
£ £
Year 1 35,000 23,000
Year 2 40,000 23,000
Year 3 55,000 23,000
Year 4 60,000 23,000

Cost of capital is estimated at 8%.

Required:

10. By using the information given, compare these investment options based on
‘Payback Period’ and ‘Net Present Value’ methods.

 

 

11. State, with reasons, which project you would recommend.

 

 

 

 

 

Present value table

Rate / 1% 2% 3%
eriods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20%
1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833
2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0.694
3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579
4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0.482
5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0.402
6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 0.480 0.456 0.432 0.410 0.390 0.370 0.352 0.335
7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0.279
8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.434 0.404 0.376 0.351 0.327 0.305 0.285 0.266 0.249 0.233
9 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.391 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194
10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.352 0.322 0.295 0.270 0.247 0.227 0.208 0.191 0.176 0.162
11 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0.148 0.135
12 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 0.112
13 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.258 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0.093
14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.232 0.205 0.181 0.160 0.141 0.125 0.111 0.099 0.088 0.078
15 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.209 0.183 0.160 0.140 0.123 0.108 0.095 0.084 0.074 0.065
16 0.853 0.728 0.623 0.534 0.458 0.394 0.339 0.292 0.252 0.218 0.188 0.163 0.141 0.123 0.107 0.093 0.081 0.071 0.062 0.054
17 0.844 0.714 0.605 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0.170 0.146 0.125 0.108 0.093 0.080 0.069 0.060 0.052 0.045
18 0.836 0.700 0.587 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.153 0.130 0.111 0.095 0.081 0.069 0.059 0.051 0.044 0.038
19 0.828 0.686 0.570 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.138 0.116 0.098 0.083 0.070 0.060 0.051 0.043 0.037 0.031
20 0.820 0.673 0.554 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0.124 0.104 0.087 0.073 0.061 0.051 0.043 0.037 0.031 0.026

P

Annuity table

Rate / Periods
1%

2%

3%
4%
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
15%
16%
17%
18%
19%
20%
1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833
2 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.713 1.690 1.668 1.647 1.626 1.605 1.585 1.566 1.547 1.528
3 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.444 2.402 2.361 2.322 2.283 2.246 2.210 2.174 2.140 2.106
4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.102 3.037 2.974 2.914 2.855 2.798 2.743 2.690 2.639 2.589
5 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3.127 3.058 2.991
6 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4.231 4.111 3.998 3.889 3.784 3.685 3.589 3.498 3.410 3.326
7 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.712 4.564 4.423 4.288 4.160 4.039 3.922 3.812 3.706 3.605
8 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 5.146 4.968 4.799 4.639 4.487 4.344 4.207 4.078 3.954 3.837
9 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.537 5.328 5.132 4.946 4.772 4.607 4.451 4.303 4.163 4.031
10 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.889 5.650 5.426 5.216 5.019 4.833 4.659 4.494 4.339 4.192
11 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 6.207 5.938 5.687 5.453 5.234 5.029 4.836 4.656 4.486 4.327
12 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.492 6.194 5.918 5.660 5.421 5.197 4.988 4.793 4.611 4.439
13 12.134 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.750 6.424 6.122 5.842 5.583 5.342 5.118 4.910 4.715 4.533
14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.982 6.628 6.302 6.002 5.724 5.468 5.229 5.008 4.802 4.611
15 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 7.191 6.811 6.462 6.142 5.847 5.575 5.324 5.092 4.876 4.675
16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 7.379 6.974 6.604 6.265 5.954 5.668 5.405 5.162 4.938 4.730
17 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.022 7.549 7.120 6.729 6.373 6.047 5.749 5.475 5.222 4.990 4.775
18 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.702 7.250 6.840 6.467 6.128 5.818 5.534 5.273 5.033 4.812
19 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.839 7.366 6.938 6.550 6.198 5.877 5.584 5.316 5.070 4.843
20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7.963 7.469 7.025 6.623 6.259 5.929 5.628 5.353 5.101 4.870

Standard Cost Card Standard Cost Card Standard Cost Card Standard Cost Card

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The next section of the book, Formation details the process that those starting a new church need to take in building the church staff. An efficient foundation stage pays off at this phase. The formal groundwork begins. It takes the readers about the procedures of&nbsp.planning for the first mass and the significance of that first service.

Discuss genetic and epigenetic phenomena influence on cardiovascular risk by altering the pathophysiology of plasma lipoproteins

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JAMES CAMPBELL V LAW ENTERPRENUER LTD. IN THE SUPREME COURT OF UNITED S OF AMERICA MEMORIAL FOR THE RESPONDENT

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I need help creating a thesis and an outline on Mooting. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required.

JAMES CAMPBELL V LAW ENTERPRENUER LTD. IN THE SUPREME COURT OF UNITED S OF AMERICA

MEMORIAL FOR THE RESPONDENT

Introduction

your lordship/my lady(s), as may it please the court. am mr x (mention your official name) appearing as counsel for the respondent the law students entrepreneur ltd, with respect to this honorable court i would like to take the next ten minutes (or any other time allocated) to address our grounds of submissions proving to this court that the respondent they never had any contract with the appellant as they never made any offer to the appellant with regard to the matter in contention.

Turning on to our grounds of submissions.

1. The Respondent submits before this Honorable court of Appeal in the right position by upholding that an advertisement is an invitation to treat and not an offer, therefore there was neither an offer nor contract between the respondent and the appellant. In proving this the respondent will rely on the literal rule of the statute.

2. The respondent submits that the advert which was placed on the 4th November was just an invitation to treat. We further submit that the judge is expected to at first instance apply the literal rule of the statute before considering anything else.1 Thus we submit that as held in partridge,2 an advert amount to an invitation to treat and not an offer.3

3. The respondent further submits that the advertisement did not show any intention for them to be bound and therefore it never amounted to an offer.4

4. We submit that though it’s possible to make an offer to the world (unilateral offer), the facts of this particular case are very different from those of Carlill v Carbolic smoke ball case,5 since in the Carlill case the respondent company had deposited $1,000 in the Alliance Bank to show their commitment and in which it can be inferred their intention to be bound by, upon acceptance, but in this case, the Respondent did not show in any way either express or implied intention to be bound by the advert upon acceptance thus it can only be concluded to be an invitation to treat and not an offer.

5. Furthermore, the respondent submits that the Appellant did not communicate upon acceptance as it’s the general the rule of requirement that the offeree must communicate to the offeror upon acceptance to effect the contract formation.6 Also, the appellant cannot claim that their conduct amount to an acceptance,7 since the need to communicate acceptance is only waived when the other party does not object to the conduct of the appellant. But in this case the respondent objected to the appellant conduct long before even the stall was opened,8 and even upon opening the stall their objected to his conduct.9

Conclusion

Subject to further Questioning from your lordship(s)/my lords/lady this brings me to the end of our submissions, and in so doing I would like to site our humble prays before this honorable Court.

Relief Sought.

The respondent humbly prays this Honorable court:

1. To dismiss the claim by the appellant on the grounds aforesaid.

2. Dismiss the matter and costs and interests upon the appellant.

Bibliography

Entorres v Miles Far East [1955] 2 QB 327 Court of Appeal

Butler Machine Tool v Ex-Cell-O Corporation [1979] 1 WLR 401 Court of Appeal

Per Partridge v Crittenden (1968) 2 All ER 421

Fisher v Bell1961] 1 QB 394

Harvey v Facey [1893] AC 552&nbsp.Privy Council [1893] 1 QB 256 Court of Appeal.