Management Accounting Paper

In: Business and Management

Submitted By phuongvy
Words 2814
Pages 12
Jan Turyna

CASE 1 Management Board of Furniture Company X is considering one-year contract for producing office desks. Accounting Department has prepared preliminary list of contract costs and revenues:
|Specification |Amount |
|1. Direct material costs, including: | |
|- plywood (stock-carried in company’s store) |20000 |
|- varnish (ordered) |9000 |
|- metal connectors (still not ordered) |1500 |
|2. Direct labor costs |20000 |
|3. Indirect labor costs (salary of technical supervisor) |5000 |
|4. Technical equipment, including: | |
|- rented one (200/per week) |10400 |
|- company’s own equipment (one year’s depreciation) |10000 |
|5. General overhead costs |20000 |
|6. One year’s planned revenue (guaranteed by contractor) |50000 |

Additional information:

1. The…...

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