solved Assignment Question(s): Â Â Â Â Â Â Â Â

Assignment Question(s):                                                                         [100 marks]
Q1. Discus how static budget failed to analyze cost and revenues variances and how flexible budget has overcame static budgets’ deficiencies and explain how does the flexible budget actually work?
                                                                                                                                            [15 marks]
Note: do not copy and paste from other sources, you can use other sources but formulate your own answers.
Q2. Hamed Company is preparing budgets for the quarter ending June 30, 2019.
Budgeted sales in units for the next five months are:
April   
May     
 June      
July
20,000
50,000
30,000
25,000
Required:
a.Prepare Sales budget for April, May & June assuming selling price per unit is SR 15.
                                                                                                                                  [10 marks]
b.Prepare production budget for April, May & June if the company wishes ending inventory as
10 % of next month sales units.                                                                                       [10 marks]                                               
Q3.Oraby Industries is a division of a major corporation. Last year the division had total sales of SAR 23,380,000, operating income of SAR 2,828,980, and invested assets of SAR 10,000,000.
Required:
a. What is the division’s profit margin?                                                                               [5 marks]
b. What is the division’s investment turnover?                                                                    [5 marks]
c. What is the division’s return on investment (ROI) using DuPont formula?                    [5 marks]
d. What is the residual income if investors require a minimum return of  20%?                [5 marks]
Q4. Taha Company produces joint three products: Product A, Product B, and Product C. 
          During the year, joint costs of processing the three products were SAR400, 000.  The following information were given to you as follows:
Product
Units
Produced
Selling price per unit  at split-off point(SR)
Expenses per  unit after split-off point ( (SR)
Selling price per unit  after split-off point(SR)
A
400,000
20
20
40
B
400,000
18
15
28
C
800,000
12
14
17
Required:
a.   Allocate the joint costs using the physical output method.                                 [15 marks]
b.   Allocate the joint costs using the net realizable value method.                          [15 marks]
c.   Allocate the joint costs using sales value at split-off point method.                   [15 marks]