Approved By

Assessment Instrument Assignment 2

Course Name Managerial Accounting Course code ACCT 3102
Semester Spring Year 2019
Maximum Marks 15 Marks
Instructor Dr. Kinslin D.
th
Assignment Due Date 30 April, 2019
i) Assignment should be submitted by electronically through Turnitin
Assessment Submission
ii) Academic dishonesty of any kind is strictly prohibited
Instructions
iii) Assignment should be submitted by its due date as scheduled by the
Course Instructor
Word or Page Limit Theory question 500 words and for Problem all steps, answer and decision.
Use the following format:
• Introduction / Formula for the problem
• All necessary steps / Sub points
• Final answer and answer for every stage / Detailed explanation
Presentation Format • Relevant analysis with valid reasoning / Exceptions if any
• Decision making / Suggestions
• Conclusion if requires
• MS Word document, Times new roman , front size 12 and 1.5 line space
• Referencing Use APA or MLA format (minimum 5)
(Instructor provides additional guidelines and directions in class)
Resources and Support College library, internet newspapers, Journals, magazines, or other reference
Available sources.
Description of  Assignment two covers Operational level Decisions using Managerial Accounts,
Assignment Task Break – Even Point analysis, Special Orders, make-or-buy decisions and CVP
Analysis and Limiting Factor Decisions

Course Learning Outcomes Course Learning Outcomes Question

Assessed Number
Decide optimal use of scarce resource in different 1
situations like, Special Orders, make-or-buy decisions,
etc.
Make Strategic and Operational level Decisions using 2
Managerial Accounts.
Evaluation Criteria The instructor evaluates assignments and awards marks based on the following
criteria:
1. a) Marginal Revenue -1 marks
b) Total marginal cost - 4 marks
c) Additional Contribution issues - 1 marks
d) Financial grounds should the special order - 2 marks
2. a) Marginal cost of production - 4 marks
b) Should Furniture Inn accept the offer from the supplier -1.5 marks
c) Decision if the supplier offered the tables at $12 each -1.5 mark

Managerial Accounting ACCT 3102 ASSIGNMENT 2 SPRING- 2019

Page 1 of 3
 Question:

1. The Distinctive Hardware Industries manufactures one product toolboxes. Company is operating at
60% of its normal capacity. It sells the toolboxes at $10 each. An income statement for the year ended
30 June 2018 is as follows:

A major automobile company Deewan group has offered to purchase 40,000 toolboxes modified to
their specifications. The tool boxes will differ significantly from usual design and the buyer will market
the toolboxes under its own private label. Thus these tool boxes will not complete with Distinctive
Hardware’s regular toolboxes.

The Deewan group has offered Distictive Hardware Industries $5.50 per toolbox. Direct labor and
overheads will be at the same unit cost as Distinctive Hardware Industries’ regular toolboxes. Direct
materials will amount to $1.50 per toolbox. Shipping costs to be borne by Distinctive Hardware will
amount to 10 cents per tool box.

Required to calculate:
a) Marginal Revenue 1 mark
b) Total marginal cost 4 marks
c) Additional Contribution 1mark
d) State on financial grounds should the special order be accepted 2 marks

2. Furniture Inn manufactures computer tables. Recently a supplier has offered the tables of the same
quality @ $14 each with an assurance of continued supply.

The following is the budget for 4000 units prepared for the quarter ending 30 September 2018:

Managerial Accounting ACCT 3102 ASSIGNMENT 2 SPRING- 2019

Page 2 of 3
Required:
a) Find the marginal cost of production 4 marks

b) Should Furniture Inn accept the offer from the supplier? 1.5 marks

c) What would be the decision if the supplier offered the tables at $12 each? 1.5 marks

Managerial Accounting ACCT 3102 ASSIGNMENT 2 SPRING- 2019

Page 3 of 3