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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

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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
Answered Same Day Jun 21, 2021

Solution

Kiran answered on Jun 21 2021
131 Votes
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
    ÷ Students per class            80
    Requirement of Classes            375
     x subjects per class            4
    Professors requirement for classes            1,500
    ÷ 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
    © 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
     © 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
    b) Discuss two advantage and two disadvantages of standard costing system
    Advantages:
    Adavantages of not changing standard direct labor rate: - New Stadard cost Sheet is not prepared. - Standard cost per unit is computed at old rate, hence it is...
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