SECTION B: Structured Questions (60 marks)

This section consists of TWO (2) questions. Answer ALL questions.

Question 1

The Eliza Company manufactures two products, known as Alma and Sama. Alma is produced in department 1 and Sama is produce in department 2. The following information is available for 2022.

Product	Alma	Sama
Sales
Budgeted sales units	8,500	1,600
Unit selling price	RM400	RM560
Finished good stock
Planned ending finished good (units)	1,870	90
Beginning finished goods (unit)	170	85
Direct labour hour and rate per hour
Direct labour time per unit (hour)	10	15
Direct labour rate per hour	RM12	RM12

The following direct materials are used in the two products:

	Amount used per unit
Direct material	Alma	Sama
Xee	10 units	8 units
Yee	5 units	9 units

Projected data for 2022 with respect to direct materials are as follows:

Direct material	Budgeted purchase price	Beginning direct materials inventory	Planned ending materials inventory
Xee	RM7.20	8,500	10,200
Yee	RM16	8,000	1,700

Required:

Prepare the following budgets for the year. Show the dates for each product. The quarterly budget should not be prepared.

1. Sales budget in units and RM [4 marks]

2. Production budget in units [8 marks]

3. Direct materials usage budgets in unit [9 marks]

4. Direct materials purchases budget in unit and RM [6 marks]

5. Direct labours budget in hours and RM [3 marks]

[Total: 30 marks]

Question 2

Airborne Sdn Bhd is a manufacturing business. The company has divided into four departments, Machine A and Machine B are production departments, Maintenance and Material Handling are service departments.

The following are the costs:

Apportionment cost	RM
Maintenance cost	500
Depreciation of machinery	1,000
Insurance Building	1,200
Supervision costs	1000
Power	400
Machine insurance	600
Electricity	500
Canteen costs	2,000
	7,200

The following information is available with respect to the four departments:

	Machine A	Machine B	Maintenance	Material Handling
Area (sq metre)	2,000	1,500	1,000	500
No of employee	30	30	20	20
Effective horse power	10	15	15	10
Machinery value (RM)	35,000	30,000	20,000	15,000
Maintenance hours	350	300	200	150
Allocated costs:
Direct material	300	700	350	150
Direct labour	1000	1,400	500	400

You are required to:

1. Prepare an analysis of the overheads using the basis provided. [Total: 30 marks]

END OF QUESTION PAPER