Q 1 Provide numerical example of assigning support department cost and discuss the purpose of assigning support department costs (Week 10: Chapter 8, Measuring and Assigning Support Department Costs).
Q 2 LMN Company 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:
Sales Value
Product Units at Split-Off Separable Costs Selling Price
K500,000$13 per unit $6.00 per unit$40 per unit
L300,000 $12per unit $4.00 per unit$37 per unit
M200,000$8 per unit $3.00 per unit$28 per unit
Allocate the joint costs using the physical output method.
(Week 11: Chapter 9, Joint product and by – Product costing)
Q 3 Provide numerical examples of static and flexible budget and discuss how these budgets could be used to evaluate the performance of the managers (Week 12: Static and flexible budgets).
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