​​​ Discuss the differences between production and nonproduction resources. Use examples in your workplace or one which you are familiar with to explain your answer. (10 marks) (b) Many employers are treating direct labour as a true variable cost. Employees are hired and laid off regularly as the employer's needs dictate. One article refers to this as "tapping and zapping employees". Companies are increasing resorting to using contract workers. Can these costs be treated as variable costs? Examine and discuss. (10 marks) Question 2 NanoTech Pte Ltd produces Product X through two departments: Department A and Department B. All direct materials are introduced at the start of the process. Conversion costs are incurred uniformly throughout the process. The following information pertain to Department A for June 20X9: Work in process, 1st June Units (100% complete, materials; 70% complete, labour and overhead) 10,000 Started during June 160,000 Work in process, 30th June (100% complete, materials; 30% complete, labour and overhead) 18,000 ACC203e Assignment 2 The costs of Department A work in process at 1st June were as follows: Work in process, 1st June Materials $102,000 Direct labour 69,000 Overhead 45,000 Total $216,000 The costs added by Department A during June were as follows: Materials $2,040,000 Direct labour 880,650 Overhead 540,000 Total costs added $3,460,650 Required: (a) Prepare a production report for Department A for June using the weighted average method. The report should disclose the physical flow of units, equivalent units, unit costs as well as the costs transferred out. (25 marks) (b) What are the possible pros and cons of weighted-average versus FIFO processing costing? (10 marks) Question 3 Organization design can be defined narrowly, as the process of reshaping organization structure and roles, or it can more effectively be defined as the alignment of structure, process, rewards, metrics and talent with the strategy of the business. Attention to all of these organizational elements is necessary to create new capabilities to compete in a given market. Select a company you are familiar with or one you are currently working in, or one with information publicly available. Using your own words as much as possible, and in not more than 600 words for each of the section below: (a) Provide an outline of the industry the chosen company is operating in, and an outline of the organisational structure and internal accounting system it has adopted. (5 marks) (b) From the analysis of the organisational structure and internal accounting system, comment on how it did or did not satisfy the requirements of the following three systems: (i) A system that measures performance; (ii) A system that rewards and punishes performance; and (iii) A system that partitions decision rights. (15 marks) ACC203e Assignment 2 (c) Identify the agency costs that have resulted or expected to result under the existing system. Elaborate on the extent of damage these costs are expected to have on the company's reputation. (15 marks) (d) Discuss and provide recommendations on ways to reduce the agency costs identified. (10 mark