Product Outputs in units Costs per unit: Direct material Direct labour Machine hours (per units) A...
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Product Outputs in units Costs per unit: Direct material Direct labour Machine hours (per units) A 135 RM 40 22 5 Machine department costs Set-up costs Stores receiving B 86 Materials handling and dispatch Inspection/Quality control RM 50 18 3 Cost Set-up costs Stores receiving Materials handling & dispatch Inspection/Quality control C 92 The four products are similar and are usually produced in production runs of 20 units and sold in batches of 10 units. RM 20 11 4 The production overheads are currently absorbed by using a machine hour rate, and the total of the production overhead for the period has been analyzed as follows: D 100 RM 35 20 2 RM 8920 4427 7350 1290 2100 You have ascertained that the cost drivers to be used are as listed below for the overhead costs shown: Cost driver Number of production runs Requisitions raised Orders executed Number of production runs a- Calculate the total costs for each product if all overhead costs are absorbed on a machine hour basis. (12m) b- The following data relate to two output levels of a department: Machine hours Overhead 19500 RM 352000 The variable overhead rate per hour is 2.50. The amount of fixed overheads is: (3m) c- Zay Zay Company has just been incorporated last year. They have decided to adopt a costing method for their manufacturing company. They are currently in a dilemma on which costing method to integrate in their organization. What costing method would you suggest and state the advantages of it. (4m) d- State the difference between the FIFO Method and the Weighted Average method. (2m) e- If the selling price is RM 5,000, the contribution margin per unit is RM 1,000, then the contribution margin percentage will be: (1m) f- Assume that as an investor, you are planning to enter the construction industry as a panel formwork supplier. The potential number of forthcoming projects, you forecasted that is within two years, your fixed cost for producing formworks is $ 300,000. The variable unit cost for making one panel is $ 15. The sale price for each panel will be $ 25. If you charge $25 for each panel, how many panels you need to sell in total, in order to start making money? (2m) Product Outputs in units Costs per unit: Direct material Direct labour Machine hours (per units) A 135 RM 40 22 5 Machine department costs Set-up costs Stores receiving B 86 Materials handling and dispatch Inspection/Quality control RM 50 18 3 Cost Set-up costs Stores receiving Materials handling & dispatch Inspection/Quality control C 92 The four products are similar and are usually produced in production runs of 20 units and sold in batches of 10 units. RM 20 11 4 The production overheads are currently absorbed by using a machine hour rate, and the total of the production overhead for the period has been analyzed as follows: D 100 RM 35 20 2 RM 8920 4427 7350 1290 2100 You have ascertained that the cost drivers to be used are as listed below for the overhead costs shown: Cost driver Number of production runs Requisitions raised Orders executed Number of production runs a- Calculate the total costs for each product if all overhead costs are absorbed on a machine hour basis. (12m) b- The following data relate to two output levels of a department: Machine hours Overhead 19500 RM 352000 The variable overhead rate per hour is 2.50. The amount of fixed overheads is: (3m) c- Zay Zay Company has just been incorporated last year. They have decided to adopt a costing method for their manufacturing company. They are currently in a dilemma on which costing method to integrate in their organization. What costing method would you suggest and state the advantages of it. (4m) d- State the difference between the FIFO Method and the Weighted Average method. (2m) e- If the selling price is RM 5,000, the contribution margin per unit is RM 1,000, then the contribution margin percentage will be: (1m) f- Assume that as an investor, you are planning to enter the construction industry as a panel formwork supplier. The potential number of forthcoming projects, you forecasted that is within two years, your fixed cost for producing formworks is $ 300,000. The variable unit cost for making one panel is $ 15. The sale price for each panel will be $ 25. If you charge $25 for each panel, how many panels you need to sell in total, in order to start making money? (2m) Product Outputs in units Costs per unit: Direct material Direct labour Machine hours (per units) A 135 RM 40 22 5 Machine department costs Set-up costs Stores receiving B 86 Materials handling and dispatch Inspection/Quality control RM 50 18 3 Cost Set-up costs Stores receiving Materials handling & dispatch Inspection/Quality control C 92 The four products are similar and are usually produced in production runs of 20 units and sold in batches of 10 units. RM 20 11 4 The production overheads are currently absorbed by using a machine hour rate, and the total of the production overhead for the period has been analyzed as follows: D 100 RM 35 20 2 RM 8920 4427 7350 1290 2100 You have ascertained that the cost drivers to be used are as listed below for the overhead costs shown: Cost driver Number of production runs Requisitions raised Orders executed Number of production runs a- Calculate the total costs for each product if all overhead costs are absorbed on a machine hour basis. (12m) b- The following data relate to two output levels of a department: Machine hours Overhead 19500 RM 352000 The variable overhead rate per hour is 2.50. The amount of fixed overheads is: (3m) c- Zay Zay Company has just been incorporated last year. They have decided to adopt a costing method for their manufacturing company. They are currently in a dilemma on which costing method to integrate in their organization. What costing method would you suggest and state the advantages of it. (4m) d- State the difference between the FIFO Method and the Weighted Average method. (2m) e- If the selling price is RM 5,000, the contribution margin per unit is RM 1,000, then the contribution margin percentage will be: (1m) f- Assume that as an investor, you are planning to enter the construction industry as a panel formwork supplier. The potential number of forthcoming projects, you forecasted that is within two years, your fixed cost for producing formworks is $ 300,000. The variable unit cost for making one panel is $ 15. The sale price for each panel will be $ 25. If you charge $25 for each panel, how many panels you need to sell in total, in order to start making money? (2m) Product Outputs in units Costs per unit: Direct material Direct labour Machine hours (per units) A 135 RM 40 22 5 Machine department costs Set-up costs Stores receiving B 86 Materials handling and dispatch Inspection/Quality control RM 50 18 3 Cost Set-up costs Stores receiving Materials handling & dispatch Inspection/Quality control C 92 The four products are similar and are usually produced in production runs of 20 units and sold in batches of 10 units. RM 20 11 4 The production overheads are currently absorbed by using a machine hour rate, and the total of the production overhead for the period has been analyzed as follows: D 100 RM 35 20 2 RM 8920 4427 7350 1290 2100 You have ascertained that the cost drivers to be used are as listed below for the overhead costs shown: Cost driver Number of production runs Requisitions raised Orders executed Number of production runs a- Calculate the total costs for each product if all overhead costs are absorbed on a machine hour basis. (12m) b- The following data relate to two output levels of a department: Machine hours Overhead 19500 RM 352000 The variable overhead rate per hour is 2.50. The amount of fixed overheads is: (3m) c- Zay Zay Company has just been incorporated last year. They have decided to adopt a costing method for their manufacturing company. They are currently in a dilemma on which costing method to integrate in their organization. What costing method would you suggest and state the advantages of it. (4m) d- State the difference between the FIFO Method and the Weighted Average method. (2m) e- If the selling price is RM 5,000, the contribution margin per unit is RM 1,000, then the contribution margin percentage will be: (1m) f- Assume that as an investor, you are planning to enter the construction industry as a panel formwork supplier. The potential number of forthcoming projects, you forecasted that is within two years, your fixed cost for producing formworks is $ 300,000. The variable unit cost for making one panel is $ 15. The sale price for each panel will be $ 25. If you charge $25 for each panel, how many panels you need to sell in total, in order to start making money? (2m)
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