Q 1 Provide numerical example of assigning support department cost and discuss the purpose of assigning support department costs (Chapter 8, Measuring and Assigning Support Department Costs).
Q 2 LMN Compagny produces three products K, L and M.During the year, the joint costs
of processing the three products were $480,000.
Production and sales value information were as follows:
Product Units at Split-Off Separable Costs Selling Price
K 500,000 $13 per unit $6.00 per unit $40 per unit
L 300,000 $12per unit $4.00 per unit $37 per unit
M 200,000 $8 per unit $3.00 per unit $28 per unit
Allocate the joint costs using the physical output method.
(Chapter 9, Joint product and by – Product costing)
Q 3Provide numerical examples of static and flexible budget and discuss how these budgets could be used to evaluate the performance of the managers (Chapter 10, Static and flexible budgets).
All required chapters and question file attached.
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