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).

(2 marks)

Q 2 LMN Compagny 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

ProductUnits at Split-OffSeparable 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)

(1.5 marks)

Q 3Provide 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).

(1.5 marks)

.