Documentos de Académico
Documentos de Profesional
Documentos de Cultura
2.
3.
Bangalore
0.2500
0.3333
Ahmedabad
0.5000
0.5000
Delhi
0.2500
0.1667
Variable rates:
Maintenance: Rs.30,000/8,000 = Rs.3.75 per flight hour
Baggage:
Rs.64,000/30,000 = Rs.2.1333 per passenger
Bangalore
Maintenancefixed:
(0.25 Rs.240,000)
(0.50 Rs.240,000)
(0.25 Rs.240,000)
Maintenancevariable:
(Rs.3.75 2,000)
(Rs.3.75 4,000)
Ahmedabad
Delhi
Rs.60,000
Rs.120,000
Rs.60,000
7,500
15,000
(Rs.3.75 2,000)
Baggagefixed:
(0.3333 Rs.150,000)
(0.5000 Rs.150,000)
(0.1667 Rs.150,000)
Baggagevariable:
(Rs.2.1333 10,000)
(Rs.2.1333 15,000)
(Rs.2.1333 5,000)
7,500
49,995
75,000
25,005
21,333
32,000
Rs.138,828
2.
Rs.242,000
10,667
Rs.103,172
The allocations are the same as in Requirement 1, except variable costs are
assigned using actual instead of budgeted activity.
Maintenancefixed
Maintenancevariable:
(Rs.3.75 1,800)
(Rs.3.75 4,200)
(Rs.3.75 2,500)
Baggagefixed
Baggagevariable:
(Rs.2.1333 8,000)
(Rs.2.1333 16,000)
(Rs.2.1333 6,000)
Bangalore
Rs.60,000
Ahmedabad
Rs.120,000
Delhi
Rs.60,000
6,750
15,750
49,995
9,375
25,005
75,000
17,066
34,133
Rs.133,811
Rs.244,883
12,800
Rs.107,180
Hyderabad
Bangalore
Kanoor
Faridabad
Delhi
(Rs.431,800/Rs.2,540,000)(Rs.182,500)*
(Rs.508,000/Rs.2,540,000)(Rs.182,500)
(Rs.381,000/Rs.2,540,000)(Rs.182,500)
(Rs.635,000/Rs.2,540,000)(Rs.182,500)
(Rs.584,200/Rs.2,540,000)(Rs.182,500)
= Rs.31,025
= Rs.36,500
= Rs.27,375
= Rs.45,625
= Rs.41,975
2.
3.
(Rs.337,500/Rs.2,250,000)(Rs.85,000) = Rs.12,750
(Rs.450,000/Rs.2,250,000)(Rs.85,000) = Rs.17,000
(Rs.360,000/Rs.2,250,000)(Rs.85,000) = Rs.13,600
(Rs.540,000/Rs.2,250,000)(Rs.85,000) = Rs.20,400
(Rs.562,500/Rs.2,250,000)(Rs.85,000) = Rs.21,250
H
B
K
F
D
Variable Cost
(Rs.26)(1,475)=Rs.38,350
(Rs.26)(400) =Rs.10,400
(Rs.26)(938) =Rs.24,388
(Rs.26)(562) =Rs.14,612
(Rs.26)(375) = Rs.9,750
+
+
+
+
+
+
Fixed Cost
Rs.12,750
Rs.17,000
Rs.13,600
Rs.20,400
Rs.21,250
=
=
=
=
=
=
Total
Rs.51,100
Rs.27,400
Rs.37,988
Rs.35,012
Rs.31,000
The method in Requirement 2 ties cost allocated to the driver that causes the
cost. Thus, motels would be more likely to use Accounting Department time
efficiently. The method in Requirement 1 assigns accounting costs on the
basis of a variable which may not be causally related. Also, a motel with
stable sales from year to year may still experience wild fluctuations in
allocated cost due to changing sales patterns of other motels.
2.
3.
Alternative B:
Revenue = Rs.400(350) + Rs.370(2,200) = Rs.954,000
Variable costs = Rs.200(350) + Rs.175(2,200) = Rs.455,000
Operating income = Rs.954,000 Rs.455,000 Rs.100,000 = Rs.399,000
After-tax profit = Rs.399,000(1 0.4) = Rs.239,400
Alternative C:
Revenue = Rs.400(350) + Rs.380(2,000) = Rs.900,000
Variable costs = Rs.200(2,350) = Rs.470,000
Operating income = Rs.900,000 Rs.470,000 Rs.90,000 = Rs.340,000
After-tax profit = Rs.340,000(1 0.4) = Rs.204,000
4.
Rs.500,000
168,000
22,000
32,000
180,000
15,000
403,200
7,500
164,280
Rs.1,491,980
Based on the report of the marketing consultant, the expected number of new
clients during the first year is 18,000. Therefore, it is feasible for the law office
to break even during the first year of operations as the break-even point is
10,220 clients (as shown above).
Expected value = (20 0.10) + (30 0.30) + (55 0.40) + (85 0.20)
= 50 clients per day
Annual clients = 50 360 days
= 18,000 clients per year
Current profit:
Sales
Variable expenses
Contribution margin
Fixed expenses
Operating income
Rs.400,000
250,000
Rs.150,000
60,000
Rs.90,000
(Rs.90,000)(1.50)
= (Rs.0.40 Rs.0.25)2,000,000 Rs.60,000 Advertising
Rs.135,000 = Rs.300,000 Rs.60,000 Advertising
Advertising = Rs.105,000
2.
= (P* Rs.0.30)/P*
Rs.1,520,000
Rs.20,680
28,400
834,000
Rs.883,080
(11,800)
(50,000)
Rs.821,280
121,600
942,880
Rs.577,120
Rs.175,000
68,400
187,000
430,400
Rs.146,720
2.
Rs.190,000
121,600
Rs.68,400