Material X is regularly used by John for production and usually costs RM5 per liter. However,...

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Material X is regularly used by John for production and usually costs RM5 per liter. However, John's current supplier's earliest delivery time for Material X is in three weeks time. An alternative supplier could deliver it immediately but will be charging additional transportation fee of RM 150. John already has 400 liters in inventory but 200 is already committed for the production of other jobs. A production contract was received by John for delivery in two weeks' time and will require 300 liters of material X. Late penalty for the delivery for this job will result in a penalty of RM200 per week and John is expecting delivery can be made in four weeks' time. Calculate the relevant costs (to the nearest RM) of material X for the job. Question 3 The machine ordered by a customer of Schooling Sdn. Bhd. requires 540 hours of skilled labour to make. Schooling Sdn. Bhd. currently employs the labour that have the necessary skills at a cost of RM 20 per hour but they do not have any spare capacity unless the labour are asked to work overtime at time and a half of the existing rate. Another option is for the company to hire external employees who is estimated to have only 90% efficiency level of its workers at RM26 per hour. Calculate the relevant labour (to the nearest RM) costs for manufacturing the machine ordered by the customer. Question 4 A specialized machine is required for a new project undertaken by CLOY Sdn. Bhd. The company will need to use the machine in two months' time for 5 months in total. One option is for the company to purchase the machine immediately for RM 40,000 with a realizable value at the end of the project life for RM 30,000. Alternatively, the company can hire the machine from a lessor now for RM 1,800 a month even though the company only need to use it two months later. Maintenance and running costs for both options are the same at RM 5,000 in total for the whole duration of the project. Calculate the total relevant costs (to the nearest RM) of using the specialized machine to be charged to the new project. Material X is regularly used by John for production and usually costs RM5 per liter. However, John's current supplier's earliest delivery time for Material X is in three weeks time. An alternative supplier could deliver it immediately but will be charging additional transportation fee of RM 150. John already has 400 liters in inventory but 200 is already committed for the production of other jobs. A production contract was received by John for delivery in two weeks' time and will require 300 liters of material X. Late penalty for the delivery for this job will result in a penalty of RM200 per week and John is expecting delivery can be made in four weeks' time. Calculate the relevant costs (to the nearest RM) of material X for the job. Question 3 The machine ordered by a customer of Schooling Sdn. Bhd. requires 540 hours of skilled labour to make. Schooling Sdn. Bhd. currently employs the labour that have the necessary skills at a cost of RM 20 per hour but they do not have any spare capacity unless the labour are asked to work overtime at time and a half of the existing rate. Another option is for the company to hire external employees who is estimated to have only 90% efficiency level of its workers at RM26 per hour. Calculate the relevant labour (to the nearest RM) costs for manufacturing the machine ordered by the customer. Question 4 A specialized machine is required for a new project undertaken by CLOY Sdn. Bhd. The company will need to use the machine in two months' time for 5 months in total. One option is for the company to purchase the machine immediately for RM 40,000 with a realizable value at the end of the project life for RM 30,000. Alternatively, the company can hire the machine from a lessor now for RM 1,800 a month even though the company only need to use it two months later. Maintenance and running costs for both options are the same at RM 5,000 in total for the whole duration of the project. Calculate the total relevant costs (to the nearest RM) of using the specialized machine to be charged to the new project.

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Q 3 Answer We must compare the costs of employing the current labour with the costs of hiring extern... View the full answer