Accounting excel assignment

ACCOUNTING FOR MANAGERIAL DECISION MAKING Case 1 WeRConsultants offers three professional services to its clients: (1) managementconsultancy, (2) corporate training, and (3) outbound program.Ruby Rahme, the chief accountant of the company, wants to apply the Activity- Based Costing (ABC) system to determine the cost of each service. She obtains the following cost information for 2014 as follows: a.Professional labour annual salaries: Type of Professional labour Numbers of Professionallabour Salary per person per year Total salary per year Consultants 5 $ 120,000 $ 600,000 Team Leaders 8 75,000 600,000, Trainers 12 40,000 480,000 b. All other 2014 annual costs are support costs, and categorised into four activity costs, as follows: Supplies $ 45,000 Building rent and maintenance 80,500 Administrative costs to manage clients 240,000 Subcontract services 90,000 $ 455,500 c. Consumption of supplies depends on the number of clients per year. Other information about indi vidual professional services: Management consultancy Corporate Training Outbound Program Total Square metre of building space occupied by each service 600 1,200 500 2,300 Number of clients per year 30 70 60 160 Number of subcontract services per year 50 100 300 450 d. Professional labour allocations to individual prof essional services: Management consultancy Corporate training Outbound program Consultants 5 - - Team leaders 2 3 3 Trainers 2 7 3 3 Required: a. Using the Activity-Based Costing data presented above, choose the most appropriate cost driver for each activity pool, and compute the cost-driver rate for each activity. (3 marks) b. Compute the annual cost of each professional service for 2014. (7.5 marks) Case 2 (4.5 marks) DingedIn manufactures Sweaters and Jump ers. The company’s product line projected income statement follows: Total Din g edIn's Sweaters Din g edIn’s Jumpers Sales revenue $840,000 $620,000 $220,000 Cost of Goods Sol d Variable 203,000 128,000 75,000 Fixe d 300,000 202,000 98.000 Total Cost of Goods Sol d 503,000 330,000 173,000 Gross profit 337,000 290,000 47,000 Marketin g and administrative expenses Variable 150,000 78,000 72,000 Fixe d 115,000 88,000 27,000 Total marketin g and administrative expenses 265,000 166,000 99,000 Operating income (loss) $ 72,000 $124,000 $ (52,000 ) Management is considering to disconti nue the DingedIn’s Jumpers product line. Management accountants for the company estimate that dropping the DingedIn’s Jumpers line will decrease total fixed Cost of Goods Sold by $45,000 and total fixed marketing and administrative expenses by $9,500. Required: Prepare an analysis supporting your opini on about whether or not the DingedIn’s Jumpers product line should be dropped. PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET AN AMAZING DISCOUNT :)