Table 2.2. Overhead Cost and Cost Driver QUESTION 2 (0 Marks) Cost Driver TRACOM Sdn Bhd is a local OEM car parts manufacture companies in Johor Bahru Theu top products are chock absorber as shown in Figwe 1. Production departurent operates for five (5) days per week and zdministrative department has a normal waking how from 8a.m to 5pm (1-bou bresk) with 20 day per month Activity 1. Material Handling 2. Sen 3. Machine Maintenance 4. Salaries of Administrator Overhead Cost (RM) 10 000 15 000 120 000 48 000 No. of Move No. of Setup Machine Hour Administrative working hour 1 as a new marketing manager at TRACOM Sdn Bhd has to strategize marketing plan for apany new products. a) Determine the price for each new shock absorber launched by company by using: 1) Traditional costing method with the absorption of overhead based on direct machine hours. Figure 1. Shock Absorber Produce by TRACOM Sdn Bhd Currendy, the operations only focus on producing new types of car absorber: MONROE. SACHS, BILSTEIN, KYB and TEIN. Production data in Table 1 are taken from 1 January to 31st March 2018. Da'est labor cost RM 6 per how. In order to comply company preang policy, each product pnce must be 30% more than cost of production 1) Activity-based costing (ABC) method by using activity driver rate as aven in Table 1 (17 marks) b) Calculate percentage difference between Traditional and ABC method for each product. (2 maks) ) In your opinion which method is more accurate? Explain wisy do you think so. Table 2.1. Production Data (1 mark) No of Unat Product Product No of Couponent (Per Uait Product) No of Move Labor Wocking Hous (Per Unit Component) 5 Machine How Per Unit Product 8 6 5 Materials Cost(RM) Administrative (Per Unit Rous Component Setup 100 8 + + 30 120 250 6 50 MONROE SACHS BILSTEIN KYB TEIN 2 2 4 3 80 80 4 300 50 100 5 10 7 8 4 5 10 18 lale 129 80 6 3 4 3 Table 2.2. Overhead Cost and Cost Driver QUESTION 2 (0 Marks) Cost Driver TRACOM Sdn Bhd is a local OEM car parts manufacture companies in Johor Bahru Theu top products are chock absorber as shown in Figwe 1. Production departurent operates for five (5) days per week and zdministrative department has a normal waking how from 8a.m to 5pm (1-bou bresk) with 20 day per month Activity 1. Material Handling 2. Sen 3. Machine Maintenance 4. Salaries of Administrator Overhead Cost (RM) 10 000 15 000 120 000 48 000 No. of Move No. of Setup Machine Hour Administrative working hour 1 as a new marketing manager at TRACOM Sdn Bhd has to strategize marketing plan for apany new products. a) Determine the price for each new shock absorber launched by company by using: 1) Traditional costing method with the absorption of overhead based on direct machine hours. Figure 1. Shock Absorber Produce by TRACOM Sdn Bhd Currendy, the operations only focus on producing new types of car absorber: MONROE. SACHS, BILSTEIN, KYB and TEIN. Production data in Table 1 are taken from 1 January to 31st March 2018. Da'est labor cost RM 6 per how. In order to comply company preang policy, each product pnce must be 30% more than cost of production 1) Activity-based costing (ABC) method by using activity driver rate as aven in Table 1 (17 marks) b) Calculate percentage difference between Traditional and ABC method for each product. (2 maks) ) In your opinion which method is more accurate? Explain wisy do you think so. Table 2.1. Production Data (1 mark) No of Unat Product Product No of Couponent (Per Uait Product) No of Move Labor Wocking Hous (Per Unit Component) 5 Machine How Per Unit Product 8 6 5 Materials Cost(RM) Administrative (Per Unit Rous Component Setup 100 8 + + 30 120 250 6 50 MONROE SACHS BILSTEIN KYB TEIN 2 2 4 3 80 80 4 300 50 100 5 10 7 8 4 5 10 18 lale 129 80 6 3 4 3