ACT 202 Group Project MEF
Please read the following guidelines carefully.
Total Marks: 15
GROUP:
The maximum number of people in a group is 5 (in rare case 6)
SCORES:
Each member of the same group will receive same score for project report out of 10 marks.
There will be individual 5 marks allocated to each member based on a short 3-5 line summary of
their Work done for the project, and their personal thoughts/observations out of 5 marks.
PROJECT:
This project aims to help you apply your knowledge of managerial accounting concepts. Suppose you are
planning to start a business (e.g.: plastic/wooden or any DIY Product, but not food items) and need to make a
budget for two months for your business.
REPORT:
There should be a standard format for the project report. The project should have a cover page with the
group name, ID, and sections. An abstract of 250 words, a letter of transmittal, and a table of contents
must be included. The report should not exceed 20 pages (including tables and excluding the letter of
transmittal, table of contents, and abstract). Calibri font must be used with a 12-pt. font size and 1.5 line
spacing for the report.
Read the following instructions carefully:
• Your group members are your only labor (5 members, 5 labors). Determine the maximum
production possible in a given month.
• Estimate all costs related to your business
• Manufacturing: materials; labor; manufacturing overhead like utility, rent
• Non-manufacturing: selling and administrative costs.
For estimations, you must take help from a real-world competitor or the market. So, for each
cost that you estimate, mention the source.
• Analyze each cost you estimate above and mention the type
(i.e., direct/indirect; fixed/variable).
• Assume a simple costing system. Select an appropriate allocation base and ·
determine the unit product cost of your business. Show a breakdown of the direct material,
direct labor, and MOH costs (show POHR calculation too).
• Determine the prime cost and conversion cost.
Information for the next month’s Budget:
Selling Price goes up by 15%
Monthly sales (Physical Units) growth will be 12%
Production cost increases by 20% every month
Make a master budget (Sales, Production, Selling & Administrative, Budgeted Income
Statement, and cash Budget) for 2 months. Give reasons for any changes in your
calculation and show the breakdown.
You must submit the hard copy in class (deadline: 5-Dec-24 (Thu))
Word File (Also PDF) and Excel File (if any) in CANVAS.
