APC 309: Strategic Management Accounting

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Description
APC 309 Individual assignment: Pluto plc, Discounts & Balance Scorecard
General Information
This is an individual assignment limited to 3,000 words (+or- 10%), excluding the reference list, bibliography and any appendices.
Assignment Requirements
You are required to answer two of the following three questions, each question is worth 50% of the marks:
Question 1
Pluto plc manufactures four products using the same machinery. The following details relate to its products:
Product A
£ per unit Product B
£ per unit Product C
£ per unit Product D
£ per unit
Selling price 30 34 48 45
Direct material 6 9 12 8
Direct labour 5 5 10 10
Variable overhead 3 3 6 6
Fixed overhead * 8 8 16 16
Profit 8 9 4 5
Labour hours 1 1 2 2
Machine hours 4 3 4 5
Units Units Units Units
Maximum demand per week 200 180 250 100
*Absorbed based on budgeted labour hours of 1000 per week.
There is a maximum of 2000 machine hours available per week.
Requirement:
• Determine the production plan which will maximize the weekly profit of Pluto plc and prepare a profit statement showing the profit your plan will yield.
25 marks


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