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Additional Longform Questions

The document contains practice questions for a managerial accounting course, focusing on flexible budgeting and constraint utilization. It includes a scenario for Brink Tech, a vocational school, requiring a flexible budget performance report, and a case for Victoria Co. that involves calculating contribution margins for three products under material constraints. The questions aim to enhance understanding of budgeting and resource allocation in a business context.

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9 views2 pages

Additional Longform Questions

The document contains practice questions for a managerial accounting course, focusing on flexible budgeting and constraint utilization. It includes a scenario for Brink Tech, a vocational school, requiring a flexible budget performance report, and a case for Victoria Co. that involves calculating contribution margins for three products under material constraints. The questions aim to enhance understanding of budgeting and resource allocation in a business context.

Uploaded by

nguyendinhminhnhat888
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Introduction to Managerial Accounting (ACCT2020)

Longform Question Practice

Question 1 - Flexible Budget


Brink Tech is a for-profit vocational school. The school bases its budgets on two
measures of activity (i.e., cost drivers), namely student and course. The school uses
the following data in its budgeting:

In June, the school budgeted for 1,710 students and 110 courses. The school's income
statement showing the actual results for the month appears below:

Required: Prepare a flexible budget performance report for June.

Question 2 - Constraint Utilization

Victoria Co. manufactures three products: M1, M2, and M3. The selling price, variable
costs, and contribution margin for one unit of each product follow:
Product
M1 M2 M3
Selling price…………………………. $225 $400 $500
Variable expenses:
Direct materials……………………… 100 225 325
Other variable expenses……………... 85 94 71
Total variable expenses……………… 185 319 396
Contribution margin………………… $40 $81 $104

1
The same raw material is used in all three products. Victoria Co. has only 20,000 pounds
of raw material on hand and will not be able to obtain any more of it for several weeks
due to a strike in its supplier’s plant. Management is trying to decide which product(s)
to concentrate on next week in filling its backlog of orders. The material costs $25 per
pound.
Required:
Compute the amount of contribution margin that will be obtained per pound of material
used in each product.

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