Question 1

.(a)The Nilam Company manufactures two products. Information about the two products is as follows:

Table 1: Product costing for Nilam Company

Product A

Product B

Selling price per unit

RM80

RM30

Variable costs per unit

45

15

Contribution margin per unit

35

15

The company expects fixed costs to be RM189,000. The firm expects 60% of its sales (in units) to be Product A (a sales mix of 3:2).

Required:

1. Calculate the contribution margin per package.

(3 Marks)

1. Determine the break-even point in units for Products A and B.

(3 Marks)

1. Justify the level of sales (in dollars) necessary to generate operating income of RM35,000.

(4 Marks)

1. Eastminster Company has the following information:

Direct Materials

Direct Labor

Standard Quantity

10,000

Standard Hours

2,000

Actual Quantity

12,000

Actual Hours

1,875

Standard Price

RM14

Standard Rate

RM10

Actual Price

RM12

Actual Rate

RM11

Required:

1. Determine the materials price variance, materials usage variance, labor rate variance and labor efficiency variance and justify whether it is favorable or unfavorable.

(10 Marks)

urgent question please

please use the formula to find units