Question 1A. Explain briefly what action management can take to manage directlabour if this is expected to be a scarce resource.Note: You must use the relevant academic literature and relevant practicalexamples or case studies to answer this question and include referencesappropriately as an evidence of your wider reading and research.(15 marks)B. Hygienics Co produces free-standing sanitiser units for domestic andcommercial use. They produce a single product in a highly competitivemarket. They have gathered the following expected information for the year2021:£Selling price (per unit)Direct materials (per unit)Direct labour (per unit)155.0060.2530.50Other costs are estimated for the year 2021 based on the expected sales of62,000 units.
These costs are given below:FixedCostsVariableCostsOperating Costs 420,000 1,750,000Marketing Costs 350,000 122,500Storage Costs 570,000 101,000Administration Costs 232,000 -For the year 2021, you are required to calculate:a) the expected profit or loss(5 marks)b) breakeven point in units and sales revenue(5 marks)c) margin of safety in units and % change(5 marks)d) the profit/loss if the selling price is increased by 5% and salesquantity decreases by 50%(5 marks)e) the revised break-even point in units for (d)(5 marks)AFE4005-B_ITA_Alternative Assessment MAIN_ 2020-2021(Total 40 marks)AFE4005-B_ITA_Alternative Assessment MAIN_ 2020-2021Question 2A. Discuss the importance, for an organisation, of preparing a cash budgetespecially in light of the COVID-19 pandemic and the difficulties this maypresent.Note: You must use the relevant academic literature to answer this question andinclude references appropriately as an evidence of your wider reading andresearch.(15 marks)B. Bright Co. has three production departments Star, Shine, and Spark and oneservice department Shade. Bright Co is preparing its annual budget for the finalquarter of 2021. Planned overhead costs for the quarter are as follows:Overheads £Allocated overheads 40,000Supervision 14,400Depreciation 18,000Machine Insurance 6,000Rates and Rent 36,000The following information is available for each department:Departmental details Star Shine Spark ShadeAllocated overhead 12,500 14,000 10,250 3,250Machine Value (£) 5,000 2,500 3,500 1,500Budgeted Direct Labour hours 1,000 500 1,500 1,000Floor Area Occupied
(Square metres) 1,500 400 500 100Of the total overhead costs allocated to the service department Shade, 30% ischarged to Star and the remainder is charged equally to Shine and Spark.a) Prepare an overhead analysis sheet showing the total overhead costbudgeted for all four departments. You must show all your workingsclearly.(25 marks)b) Allocate the services department Shade’s costs to all productiondepartments.(5 marks)c) Glow+ is one of the leading products of Bright Co.
Bright Co. plans to earn20% profit on per unit cost of Glow+.Standard cost: Glow+ Per UnitDirect Materials per unit £60Direct Labour per unit £64Labour hours per unit of each department:Star 2Shine 1Spark 3Calculate the unit price of Glow+ using the above information.check the file below for more info8-15 references plagarisim free
Requirements: 1500
