Your assignment consists of different question styles including discussion questions, reports, exercises, problem questions and spreadsheet questions....

60.1K

Verified Solution

Question

Finance

Your assignment consists of different question styles includingdiscussion questions, reports, exercises, problem questions andspreadsheet questions. It assesses learningoutcomes as listed in the assignment rationale below.
The purpose of this assignment is to continue to develop skillsin costing systems with an emphasis on the role of control inmanaging the production of goods and services efficiently in theworkplace. Each question builds on the knowledge gained through thefirst assignment to develop the concepts of management accountingcontrol through costing. Each question uses realistic data andprofessional practices similar to that found in workplaces.
Question 1: Budget (20 marks in total)
Resort Island University is preparing its budget for theupcoming academic year. This is a specialised private universitythat charges fees for all degree courses. Currently, 15,000students are enrolled on campus. However, the university isforecasting a 5 % growth in student numbers in the coming year,despite an increase in fees of $3,500 per subject. The followingadditional information has been gathered from an examination of theuniversity records and conversations with university managers:
Resort Island is planning to award scholarships to 150students, which will cover their fees.
The average class has 80 students, and the typical studenttakes 4 subjects per semester. Resort Island operates 2 semestersper year.
The average academic staff salary is $120,000 per annumincluding on-costs.
Resort Island's academic staff are evaluated on the basis ofteaching, research administration and professional/communityservice. Each of the academic staff teaches the equivalent of threesubjects during the academic year.
Required:
Prepare a revenue budget for the upcoming academic year
Determine the number of staff needed to cover classes.
Assume there is a shortage of full-time academic staff. List atleast five actions that Resort Island might take to accommodate thegrowing student numbers.
You have been requested by the university's deputy vicechancellor (DVC) to construct budgets for other areas of operation(such as library, grounds, cafeteria, and maintenance). The DVCnoted: 'The most important resource of the university is academicstaff. Now that you know the number of staff needed, you canprepare the other budgets. Academic staff are indeed the key driver- without them we don't operate.' Does the DVC really understandthe linkages with the budgeting process? Explain.

Answer & Explanation Solved by verified expert

3.7 Ratings (709 Votes)

1 Number of staff needed to cover classes Total number of students next year 15000 5 of 15000 15750 Number of students per class 80 Number of classes required 1575080 196875 Number of subjects per See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

Your assignment consists of different question styles includingdiscussion questions, reports, exercises, problem questions andspreadsheet questions. It assesses learningoutcomes as listed in the assignment rationale below.The purpose of this assignment is to continue to develop skillsin costing systems with an emphasis on the role of control inmanaging the production of goods and services efficiently in theworkplace. Each question builds on the knowledge gained through thefirst assignment to develop the concepts of management accountingcontrol through costing. Each question uses realistic data andprofessional practices similar to that found in workplaces.Question 1: Budget (20 marks in total)Resort Island University is preparing its budget for theupcoming academic year. This is a specialised private universitythat charges fees for all degree courses. Currently, 15,000students are enrolled on campus. However, the university isforecasting a 5 % growth in student numbers in the coming year,despite an increase in fees of $3,500 per subject. The followingadditional information has been gathered from an examination of theuniversity records and conversations with university managers:Resort Island is planning to award scholarships to 150students, which will cover their fees.The average class has 80 students, and the typical studenttakes 4 subjects per semester. Resort Island operates 2 semestersper year.The average academic staff salary is $120,000 per annumincluding on-costs.Resort Island's academic staff are evaluated on the basis ofteaching, research administration and professional/communityservice. Each of the academic staff teaches the equivalent of threesubjects during the academic year.Required:Prepare a revenue budget for the upcoming academic yearDetermine the number of staff needed to cover classes.Assume there is a shortage of full-time academic staff. List atleast five actions that Resort Island might take to accommodate thegrowing student numbers.You have been requested by the university's deputy vicechancellor (DVC) to construct budgets for other areas of operation(such as library, grounds, cafeteria, and maintenance). The DVCnoted: 'The most important resource of the university is academicstaff. Now that you know the number of staff needed, you canprepare the other budgets. Academic staff are indeed the key driver- without them we don't operate.' Does the DVC really understandthe linkages with the budgeting process? Explain.