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# Due: Wednesday 24 June 2020 at 4 pm Sydney time Please give explanation wherever it required. It is very important. Question 1 Question 2 Question 3 Question 4 Question 5

Due: Wednesday 24 June 2020 at 4 pm Sydney time
Please give explanation wherever it required. It is very important.
Question 1
Question 2
Question 3
Question 4
Question 5
Answered Same Day Jun 21, 2021

## Solution

Kiran answered on Jun 21 2021
Ques. 1
Ques. 1
Part (a) Revenue budget
South Hampton University
Revenue Budget
Expected Students    Fee Per student / Subject     Number of Subjects    Revenue
30,000    3,000    4    360,000,000
Add: Expected Growth 5% of previous year            18,000,000
Revenues            378,000,000
Less: Allowed Scholarship to 200 students (3,000 x 200 x 4)            2,400,000
Per semester Revenue            375,600,000
Semesters per year            2
Budgeted revenue for the year            751,200,000
(b) Requirement of staff to cover classes of both semesters.
Students per semester            30,000
Ã· Students per class            80
Requirement of Classes            375
x subjects per class            4
Professors requirement for classes            1,500
Ã· Classes taken by a Professor            3
Professors required            500
Professors required            500
X Salary of professor per annum            120,000
Professors salary Per annum             60,000,000
Â© Steps for shortage of staff.
Steps for shortage of staff - the actions South Hampton:
(a) To start online classes
(b) Hire Temporary staff - on Part time basis
Â© Start classes in Morning and evening shifts
(d) Available staff can be requested to take additional classes
( e) Last but not the least, students in each class can be increased
Ques 2
Ques. 2
A
eviations used
AH    Actual Labor Hours
AR    Actual Labor Rate
SH    Standard Labor Hours
SR    Standard Labor Rate
(a) Calculate the following variances for April
(i) Direct labor rate variance
Labor Class III     = AH X ( AR - SR)
= 1,100 x (\$28.00 - 26.00)
\$2,200    Unfavorable
Labor Class II     = AH X ( AR - SR)
= 1,300 x (\$23.00 - 22.00)
\$1,300    Unfavorable
Labor Class I     = AH X ( AR - SR)
= 750 x (\$14.00 - 12.00)
\$1,500    Unfavorable
(ii) Direct labor efficiency variance
Labor Class III     = SR X (AH - SH)
= \$26.00 x (1,100 - 1,000)
\$2,600    Unfavorable
Labor Class II     = SR X (AH - SH)
= \$22.00 x (1,300 - 1,000)
\$6,600    Unfavorable
Labor Class I     = SR X (AH - SH)
= \$12.00 x (750-1,000)
-\$3,000    Favorable