Assignment No.

3
Submitted by: Muhammad Ilyas
Submitted to: Dr. Qaiser Ali Malik
CMS No. 29530
Question No. 01
1(a).Total Sale Volume Variance

Mint Choclate Chip (30800-25000)*(4.20) = 24,360

Vanila (27500-35000)*(5.80) = (43,500)
Rum Raisin (8800-5000)*(4.00) = 15,200
Peach (14300-15000)*(3.60) = (2,420)
Coffee (28600-20000)*(5.10) = 43,860
All Flavors 37,500

1(b). Sale Quantity Variance

Mint Choclate Chip (110000-100000)*(o.25)*(4.20)= 10,500

Vanila (110000-100000)*(o.35)*(5.80)= 20,300
Rum Raisin (110000-100000)*(o.05)*(4.00)= 2,000
Peach (110000-100000)*(o.15)*(3.60)= 5,400
Coffee (110000-100000)*(o.20)*(5.10)= 10,200
All Flavors 48,400

1©. Sale-Mix Variance

Mint Choclate Chip (0.28-0.25)*(110000)*(4.2)= 13,860

Vanila (0.25-0.35)*(110000)*(5.8)= (63,800)
Rum Raisin (0.08-0.05)*(110000)*(4.0)= 13,200
Peach (0.13-0.15)*(110000)*(3.6)= (7,920)
Coffee (0.26-0.20)*(110000)*(5.1)= 33,660
All Flavors (11,000)

2. Comments.

Question No. 02

If Product Z5 and W3 are produced What is the expected value of Production:

Z5= 1875*25= 34,375
W3= 375*30= 11,250
What is the Production Z5 Estimated Net Realized Value at Split off Point:
1375*25= 34375
Less: 150
34225
Question No. 03
3(a). Computer Management Company
Revenue:
External 200,000.00 350,000.00 550,000.00
Internal 45,000.00 15,000.00 -
Total 245,000.00 365,000.00 550,000.00
Less Cost of Services:
Incurred 110,000.00 240,000.00 350,000.00
Transferred in 15,000.00 45,000.00 -
Total 125,000.00 285,000.00 350,000.00

Profit 120,000.00 80,000.00 200,000.00

Computer Services 3000Hrs*15 = 45,000.00

Management 1200Hrs*12.5 = 15,000.00

3(b).
Computer Management Company
Revenue:
External 200,000.00 350,000.00 550,000.00
Internal 45,000.00 18,000.00 -
Total 245,000.00 368,000.00 550,000.00
Less Cost of Services:
Incurred 110,000.00 240,000.00 350,000.00
Transferred in 15,000.00 45,000.00 -
Total 125,000.00 285,000.00 350,000.00

Profit 120,000.00 83,000.00 200,000.00

Computer Services 3000Hrs*15 = 45,000.00

Management 1200Hrs*15 = 18,000.00

3©.
Computer Management Company
Revenue:
External 200,000.00 350,000.00 550,000.00
Internal 22,500.00 - -
Total 222,500.00 350,000.00 550,000.00
Less Cost of Services:
Incurred 110,000.00 240,000.00 350,000.00
Transferred in - 22,500.00 -
Total 110,000.00 262,500.00 350,000.00

Profit 112,500.00 87,500.00 200,000.00

Computer Services (3000-1200)*15 = 22,500.00

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