Support processes and monitoring finances

Reportin" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">ing Case study 8.1 – Reports on Transport Operations The Northern Lakes Transport Company operates fifteen 5-tonne and twelve min" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">ini road haulage trucks, attractin" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">ing customers in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in and around the suburbs in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in which it operates. The company has its own garage to repair vehicles, employs two full-time mechanics, and has a large compound where the vehicles are parked. Its drivers are permanent employees and whenever they are off sick or on holidays replacement drivers are hired from an agency. The owner of the company, a former general manager of Philip Island Passenger Transport, learns that the state government is plannin" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">ing to deregulate passenger transport services. He plans to sell his trucks to his competitors and provide a passenger transport service for the eastern suburbs. He wants to keep his staff, with whom he has developed a good relationship, and the garage and compound. The owner plans to operate ten 45-seat buses and twelve 20-seat min" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">ini buses. These will be purchased from manufacturers/builders if readily available and if not from second- hand vehicle dealers. The buses will be of various models and ages. The company plans to service ten different routes, usin" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">ing vehicles appropriate to the time of day and competition from other operators. The owner would like management reports assessin" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">ing the profitability of each route and each vehicle, and disclosin" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">ing in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">income from each ‘run’ (to identify the profitability of different routes at different times of the day). You are required to design a reportin" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">ing system in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">indicatin" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">ing the types of reports, their contents and the methods applied to gather in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">information for them. ? Case study 9.1 – Performance Report Rafter and Wood Industries established new facilities for its new product, and has been producin" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">ing this new product durin" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">ing the past fin" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">inancial year. The company has main" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">intain" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">ined cost records identifyin" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">ing direct materials, direct labour and the overhead costs in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">incurred. The director of fin" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">inance, havin" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">ing developed a professional relationship with you durin" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">ing your past projects with the company, in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">invites you to make a critical review of their performance report for the department producin" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">ing the new product. This performance report compares the actual output with the budgeted output, and shows the variances and the reasons for them. You perform a thorough job and adjust any figures that appear to be wrong. The adjusted actual quantities and amounts are: Number of units produced 12 000 Direct material used 281 000 metres at a total cost of $1 010 400 Direct labour 38 200 hours at a total cost of $753 500 You identify the followin" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">ing in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">information from the budget document: Planned units of production 11 000 Direct material cost per unit of product 23 metres of material at $3.60 per metre Direct material cost per unit of product 3.25 hours at the rate of $19 per hour ? Show how the performance report for this department would appear. ? Identify the variances and the possible reasons for them. Case study 5.2 – Cricket Bats Division Solomon Doostkhah, manager of the Cricket Bats Division of the Mideast Manufacturin" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">ing Company, is furious that the accountant’s report showed a divisional profit for the past week of $2150, because this is not consistent with the expected profit for the number of bats manufactured. The profit expected was: Number of bats to be made 300 Transfer price at which the division sold the bats to the stores $19 500 Cost: Material $8 500 Labour $3 500 Overhead (all fixed) $5 000 Profit $2 500 The number of bats actually made for the week was 330, so Solomon expected to make a profit of $2750. However, the profit shown was: Number of bats to be made 330 Transfer price at which the division sold the bats to the stores $21,450 Cost: Material $9,500 Labour $3,700 Overhead (all fixed) $6,100 Profit $2 150 Solomon storms in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">into the office of Lin" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">indy Andanson, the accountant, seekin" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">ing an explanation. Help Lin" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">indy prepare a report for Solomon, explain" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">inin" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">ing why the actual profit was lower than the expected profit. (Hin" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">int – you will need to prepare a flexible budget comparin" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">in" rel="nofollow">ing the actual results, to the budgeted results – at a level of 330 bats)