Standard Costing

Answer Approach Required (steps)

Mayfield Ltd manufactures a small part used in the automotive industry. You are the Management Accountant of the company and have been presented with the following information to allow you to prepare a performance report for the year ended 31st March 2020.

The budgeted level of production and sales for the year was 265,000 units and the standard manufacturing cost per unit was as follows;

                                                                                                €         

Direct materials 2.2 kg @ €11.50 each                                   25.30

Direct labour 2 hours @ €11 per hour                                   22

Variable manufacturing overhead 2hrs @ €13                        26                               

Fixed manufacturing overhead 2 hrs @ €14.50                       29                 

Standard manufacturing cost                                                  102.30

During the year, demand for the company’s product exceeded expectations. 280,000 units were manufactured and sold, generating sales revenue of €38,920,000. Shortly after establishing the standard costs for the year Kenny Ltd was forced to find a new supplier to meet its direct material requirements. Throughout the period the new supplier charged a price which was 10% in excess of the standard price. In total 600,000 kg was purchased and used. The company uses a Just-in-Time system so there were no closing stocks.

With regard to direct labour cost, while the actual rate paid to direct manufacturing employees was €0.20 per hour below standard rates, there were some labour efficiency problems encountered during the year. The employees reported difficulties handling the materials resulting in each unit taking 10% longer than the standard time.

Direct labour hours is the basis used by Kenny for allocating both variable and fixed manufacturing overheads to units of production. In the year ended 31st March 2020 the actual variable manufacturing overhead cost amounted to €8,069,000 and the fixed manufacturing overhead amounted to €9,240,000.

Requirements

1. Prepare the cost variances for Kenny Ltd for the year to 31st March 2020 in as much detail as the information given above permits.

After presenting the variances that you have calculated in part (a) above at a management meeting one of the management team expresses the view that while he ‘understands the reasons for the material and labour variances he is confused about the fixed and variable overhead variances’

2. Briefly interpret and explain the reasons for the variable and fixed overhead variances that you have calculated for the benefit of the management team.   
3. Calculate the actual gross profit earned by Kenny Ltd. for the year ended 31st March 2020.   
4. Write a short CEO brief discussing succinctly the benefits and problems with standard costing. Address the relevance of standard costing to the modern business environment.

From a random sample of 75 business days from January 4, 2010, through February 24, 2017, Russian silver prices had a mean of $3,338.48 and σ=$205.61 was the population standard deviation of silver prices. µ [?- E. ?=E what is the probability that µ is contained in the interval?

In 2003 a survey of 35,000 adults showed that 26% were smokers. In 2010 a survey of 45,000 adults showed that 21% were smokers. Construct a 95% confidence interval for the true difference between proportions.

a) (4.41% , 5.59%)

b) (3.33% , 6.67%)

c) (4.82% , 5.18%)

d) (3.83% , 6.17%)

Identify two world currencies. To demonstrate variances in exchange rates, show the comparative value of the two currencies in 2000, 2010 and March 1, 2019 (value of one currency relative to the other). How have they changed over time? What are some reasons why?

*Please answer in DETAIL*

Identify two world currencies. To demonstrate variances in exchange rates, show the comparative value of the two currencies in 2000, 2010 and March 1, 2019 (value of one currency relative to the other). How have they changed over time? What are some reasons why?

*Please answer in DETAIL*

According to Stanovich (2010), many people understand the necessity of operationism when they think about physics or chemistry. They understand that they must have a way of measuring these things but when people think and talk about psychology, they often fail to recognize the needs for operationism. Why is this a problem or challenge for the future generation?

Postpartum Depression

In this assignment we will look at women with birth depression and how estrogen treatment can affect depression. The data is contained in the data depression footprint.

Prior to treatment, all women were assessed after the Edinburgh Postnatal Depression Scale (EPDS). High EPDS scores indicate severe depression. Patients were randomly assigned to either receive placebo (group = 0, n = 18) or estrogen (group = 1, n = 22) as treatment. The EPDS score was again measured after 3 months of treatment.

In this task you should choose whether to perform a regular two-sample T-test / paired t-test, or if you should also perform a non-parametric test (Wilcoxon-Mann-Whitney test / Wilcoxon pairing test) when we To check if treatment has an effect. To determine this, check the assumptions that are the basis for performing a t-test. For a two-sample t-test, make sure that the two samples are normally distributed and for a paired t-test, be sure to check that the difference between the paired data is normally distributed. Do not use log-transformation in this task, even if it is possible.

1- Give a descriptive description of the variables EPDS prior to treatment initiated for each of the treatment groups (placebo and estrogen). Write a brief summary of what you find. Is there a significant difference between the two treatment groups in EPDS score before receiving treatment?

2- Is there a significant difference between the two treatment groups in 3 months of treatment?

3- Just look at those who have received estrogen as treatment. Have they had a significant change in EPDS score from before treatment to after 3 months of treatment?
4- Now look at those who have received a placebo. Have they had a significant change in EPDS score from before treatment to after 3 months of treatment?
5- Check the change from before treatment to after 3 months of treatment for the placebo and estrogen groups. Perform a test and check whether estrogen has had an effect on the EPDS score.

SPPS FILE

BEFORE TREATMENT

18
22
17
15
20
27
28
25
16
26
19
22
16
21
20
22
21
25
21
27
15
24
15
17
20
18
28
21
18
27
19
20
21
23
24
25
28
23
22
23

AFTER TREATMENT

21
24
23
14
17
20
20
28
20
28
14
26
18
22
13
23
18
26
10
13
15
15
17
21
8
14
9
26
9
12
9
9
11
27
10
11
10
13
8
11

GROUP

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1

Access www.ahrq.gov/clinic/prevenix.htm and compile a list of screenings appropriate for both men and women aged 50 and over. Based on Health People 2020 (https://www.healthypeople.gov/2020/topics-objectives/topic/older-adults) choose one screening tool that would assist in addressing Healthy People 2020.

On January 1, 2020, Blossom Company makes the two following acquisitions.

The company has to pay 12% interest for funds from its bank.

A) 1.

2.

B) 1.

2.