Management Accounting Fall 2025 FINAL

Daffodil International University (DIU) Faculty of Business and Entrepreneurship Department of Business Administration Semester: Fall-2025 Time: 2 Hours Course Code: 0411-314 Section: All Program: BBA Examination: Final Full Marks: 40 Course Title: Management Accounting Teacher's Name: DAR/SK/MMA/FAH (Answer all questions) 1. (a) Explain the term break-even with an example. (b) A company has a single product whose selling price is Tk.24 and variable cost is Tk.18 per unit. The company monthly fixed expenses are Tk.12,000. Requir ed: 1. Solve for the companyæ break even point in unit sales using the equation meüwd. 2. Solve for the companfs break-even pointin sales taka using the equation meüwd and the CNI ratio. 3. Solve for company s break-even point in unit sales using the contribution margin method. 4. Solve for the company s break-even point in sales taka using the contribution margin meü10d and the CNI ratio [CLO-3: L-3] 2+2+2+2+2 2. (a) Identify reasons for Material Price variance. (b) From following information of Shovon Com. Ltd. calculate variances: a) Labor Cost Variance b. Rate of Pay Variance c. Efficiency Variance d. Mix Variance e. Yield Variance f. Idle time variance Standard Labor Cost of 100 Units: Skilled Worker no hours a Tk.3 = 2,160 Unskilled Worker 630 hours O Tk2 = 1,260 1,350 3,420 Actual Labor Cost of 100 Units: Skilled Worker 650 hours a Tk3.5 = 2275 Unskilled Worker 1,000 hours a Tk.l. = 1,000 1,650 3,275 Abnormal idle time of 30 hours for both skilled and unskilled workers [CLO-3: 1—3] 2+8 3. Bülan Corporation supplies you with the following information for year of 2025: Direct material consumed Direct labor Variable manufacturing overhead Fixed manufacturing overhead 1ß0,ooo 220,000 = 10 marks = 10 marks Page 1 of 2 Administrative & selling overhead (variable) Administrative & selling overhead (fixed) Sales @ Tk.50 per unit 30,000 50,000 There was no opening inventory of work-in-process or finished goods. However, 22,000 units were produced during üle year. Requir ed: (1) You are required to prepare an income statement under the following methods (a) Absorption costing and (b) Direct costing 4. (a) Discuss the difference between standard and budget. [CL04•L-3] 5 +5=10 marks (b) ABC Manufacturing Company IS preparing its manufacturing overhead budget for upcoming year. Ihe budgeted direct labor hours for each quarter are as follows: Quarter 2nd 3rd 4th 1st Budgeted Direct LaborHours 12,000 10,500 11,500 12,500 The company's variable manufacturing overhead rate is Tk. 5.25 per direct labor hour. The fixed manufacturing overhead per quarter is estimated at Tk. 75,000. Depreciation is included in fixed overhead at Tk. 25,000 per quarter. Additionally, the company applies overhead using a predetermined overhead rate, based on direc t labor hours: Required: (a) Prepare the manufacturing overhead budget for the year. (b) Determine the companfs overhead rate per direct labor hour for the year. (c) Compute the total cost of overhead applied if actual direct labor hours for year were 47,000 hours instead of the budgeted amount. (d) Calculate overhead variance and determine whether it is over-applied or under-applied overhead. [CLO-4:L-5] 2+2+2+2 +2=10marks Page 2 of 2