se the following information to answer questions 1 to 3. Round all percentages to one

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decimal place (for example, 45.2%).

Franchises‘R’Us Corp. (FRU) is a franchisor that owns the rights to Mega Foods (MF). FRU

sells MF franchises to the franchisees. Included in the initial franchise package is startup

assistance and the required equipment. FRU provides sales and marketing services and

operational support to its franchisees on an ongoing basis. The fees for sales and marketing

services are based on the annual sales revenue generated by the franchisee.

FRU prepares its financial results in accordance with IFRS. The company only prepares

adjusting entries and accruals at year end, which is December 31.

On January 1, 20X3, FRU sold an MF franchise to New Operators Corp. (NOC). Details of

this transaction are as follows:

* The franchise agreement entitled NOC to operate an MF outlet for six years (January 1,

20X3, to December 31, 20X8).

* NOC was required to pay an initial fee of $380,000 cash on January 1, 20X3, and six

annual payments of $50,000 due on December 31 each year, with the first payment due

on December 31, 20X3.

* On January 1, 20X3, FRU delivered the equipment to NOC. The fair market value (standalone selling price) of the equipment and startup assistance was $475,000.

* FRU does not offer operational support on a stand-alone basis. FRU’s normal costs of

providing these services are $20,000 per annum. FRU’s usual markup on costs for similar

services that it provides is 30%.

* FRU determined that a 6% discount rate appropriately reflects NOC’s underlying credit

risk.

* FRU determined that the provision of the equipment and startup assistance, the

operational support and the sales and marketing services are each distinct performance

obligations.

1. What amount of the initial transaction price will be allocated to revenue for the equipment

sales and provision of startup assistance performance obligation?

a) $471,277

 

SWINBURNE UNIVERSITY OF TECHNOLOGY

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Unit Code & Title       :           MME80001 Resource Planning and Management

Date of Test 1             : 9-03-2022

 

 

Instructions to Candidates

1. Time allowed: 60 minutes; Reading Time: 15 minutes
2. This question paper includes space for answering and it should be returned at the end of test.
3. This is an open book – take home test. Any relevant books/ notes and permissible calculators can be used. Internet connectivity is required just for your Canvas/ email access to download question paper and online submission of your answers. Otherwise, you should not access Internet and other communicating devices (e.g.  mobile phones) while answering the questions.
4. This is an individual test assessment component and not a group work. You should not copy or share answers. You need to be aware of the exam rules in our University. Breaking any of them is a serious matter. Misconduct will be noted as serious offence for relevant actions.
5. The number of marks for each question is shown. Candidates are advised to allocate appropriate amount of time spent on each question accordingly.
6. This question paper has 2 Sections. The candidates should answer all two sections. There are some built-in choices in some questions.
7. Section A: Multiple Choice questions –Answer all 7 questions in this section add up to 7 marks
8. Section B: Answer ALL questions in the space for this section add up to 8 marks

Total of Test: 15 marks

7. Your question paper for the test (in suitable softcopy format) will be posted in the Canvas at around 10:00 AM.
8. You are required directly type your answers in the allocated space for each chosen question.
9. At the end of allowed test time (75 minutes), you are required to submit your file on Canvas. You should ensure that the softcopy file submitted is named as per your student ID, Surname and Given Name – i.e.STUDENTID SURNAME GIVENNAME (Example: 111111 Dorothy Oxford.docx; 1000000 Habib Khan.docx;310110X Vasu Ram.docx; 123456 Ming Monk.docx)

All candidates are required to complete this part before answering the questions.

STUDENT ID:
SURNAME:
FIRST NAME:

 

 

SWINBURNE UNIVERSITY OF TECHNOLOGY

 

Unit Code & Title       :           MME80001 Resource Planning and Management

Date of Test 1             :           9-03-2022

 

 

SECTION A (Answer ALL questions in this section. Each is 1 mark)

Choose the correct answer for each of the following multiple-choice questions.

(A1)     Resource leveling ensures that resource demand will exceed resource availability:

1. True
2. Partly True

(A2)    In a precast panel manufacturing unit, the reorder level of raw materials will depend on:

1. Lead time
2. Whether the demand is deterministic or probabilistic

(A3)    A machine foundation is planned to cost $120000. At one stage observation of this foundation work, the actual cost of work performed was $55000. The planned value and the earned value at that stage were worth $45000 and $40000 respectively. The cost variance at this stage is:

1. $45000
2. $5000

1. None of the above

(A4)    Your project is already delayed by some rework and changes. As a project manager, you have identified that availability of certain key resource is now limited or constrained. Your top priority for allocating that resource in your revised schedule should aim for:

1. Training site staff for quality control and waste minimization
2. Fast-tracking non-critical activities with alternative resources

• Attending critical activities and managing through float and alternatives IV. Informing the top management and preparing for liquidated damages

(A5) GAMMABEE is a large contractor in the region. You are the project manager of main contractor (GAMMABEE) in a large infrastructure project. The management reserve available in your project can be deemed as:

1. An amount that is reserved in other project’s contingencies.
2. An amount reserved for unforeseen works that are within the scope of your project.

• An amount of your project budget withheld for the management control purposes.

1. All of the above
2. None of the above

(A6)    An earned value analysis found that the budgeted cost of work performed (BCWP) = $97000; budged cost of work scheduled (BCWS) = $98000; and actual cost of work performed (ACWP) = $96000. The project condition refers:

1. Behind schedule and over-budget
2. Behind schedule and under-budget

• Ahead of schedule and over-budget

1. Ahead of schedule and under-budget

(A7) Activity durations are used to calculate schedule performance index in earned value analysis.

1. True
2. False

1. All of the above

 

SECTION B (Answer ALL questions in this section. Mark is provided by each question)

(B1)     Determine the expected hourly owning and operating cost for the 3rd year of operation of the Crawler tractor equipment described below:

	Crawler tractor
Cost delivered	$280,000
Tire cost	—-
Estimated life	8 years
Salvage value	$80,000
Depreciation method	Straight-line method
Investment (interest) rate	4.8%
Tax, insurance, and storage rate	10.5%
Operating conditions	Severe
Rated power	500hp
Fuel price	$1.45 per hour
Operator’s wages	$90/hour
Requirement	9 hours per day; 5 days per week; 48 weeks per year

3 marks

(B2)     You are the strategy consultant for THETA SECURE, who is a specialist building security equipment manufacturer in Australia. This company mainly produces sophisticated CCTV security cameras with special lens. By analysing following points, you are required to recommend a suitable strategy for the sourcing special lenses required for camera manufacturing. If the lenses are bought from an overseas supplier, THETA SECURE will need to arrange relevant storage, which requires a fixed cost of $20000 annually. The overseas supplier has agreed to supply the lenses for $10 per unit. Alternatively, if the lenses are procured from a local manufacturer, THETA SECURA will need a smaller storage and in-house processing facility with a fixed cost of $225000 annually and variable cost per unit (including local supplier bills) is $5 per unit.

• If the first-year projection of annual demand is 80000, which supplier is advantageous to the THETA SECURE (i.e. local or overseas)?

2 marks

• If the next year demand is not certain, what will be your decision? Provide rationale for your decision.

3 marks

 

 

 

 

Use space below for answers (calculations or text outside for non-multiple choice questions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-End-

(Note: Your answers should not exceed up to page 6)