Calculate fixed and variable costs

Assignment: Tutorial Questions Assignment (Individual)

Due: Wednesday 21st October, 2020 at 11.59pm

1. Outline the differences between fixed costs, variable costs, and mixed costs by categorising various costs of an entity into these categories

2. Calculate fixed and variable costs, contribution margin, contribution margin ratio, break-even point in sales dollars and units, and target sales volume in dollars and units
3. Appraise how pricing decisions are made

B81: 1 600 machine hours

J76: 2 400 machine hours

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Question 3 - Week 4 (9b) (7 marks)

b) Compute the number of equivalent units with respect to conversion cost.

	What account would have been credited to record Kool's completed production?

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	1,100 units
Direct material purchased

	5,200 hours @ $18 per hour

Required:
Calculate the following variances, indicating whether each variance is favourable or unfavourable:
(i) Direct material price variance
(ii) Direct material quantity variance
(iii) Direct labour rate variance
(iv) Direct labour efficiency variance
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(a) What is Tiara Corporation’s break-even point in dollars?

(b) How many units would Tiara Corporation have to sell in order to earn a before tax profit of $480,000?

Question 6 – Week 11 (13a) (11 marks)

introduce only one of the two models. Consultants confirmed this fact not too long ago,

with EBP paying $34 500 for an in-depth market study.

c) Prepare a financial analysis and determine which of the two models should be

introduced.

The assignment has to be submitted via Blackboard. Each student will be permitted one

submission to Blackboard only. Each student needs to ensure that the document submitted

Source: INQAAHE, 2020

Further Information:
For further information and additional learning resources please refer to your Discussion Board for the unit.