• Demonstrating accuracy in accounting calculations.
• Understanding and the ability to analyse and interpret the information from the calculations undertaken.
• Breadth of quality of analyses and providing appropriate guidance to management decision-making.
Brass Musical Pty Ltd manufactures brass musical instruments for use by School of Accounting students. The company uses a job costing system in which manufacturing overhead is applied based on direct labour hours. The company’s budget for the current year included the following prediction.
Budgeted total manufacturing overhead
Budgeted total direct labour hours