There are TWO (2) Questions. Answer all questions (30 MARKS)

Question 1

ABC is a producer for vehicle parts. The following table shows information on the budgeted sales and production:

uantity/Price

Unit Sales 100 units

Price 350 RM

Units to produce 120 units

Raw Materials Usage per product Cost per Unit in RM

Component 1: 30 1.00

Component 2: 20 2.00

Component 3: 10 3.00

Hours per product unit Rate RM

Direct Labour hours 4.00 8.00

Machine Hours 1.50 2.00

Variable Overhead Allocation Basis Rate RM

Maintenance Machine hours 2.00

Cleaning Direct Labour hours 1.00

Inspection Units produced 25.00

Fixed Overheads RM

Rent 1,000.00

Depreciation 2,000.00

Insurance 2,500.00

Production Manager 5,000.00

Selling and Administration 10,000.00

1. Prepare the Budgeted Income Statement and the Actual Income Statement. Conduct a variance analysis between the budget and the actual statements. (Answer should include highlighting the issues and problems the company has faced).
2. Provide the Excel spreadsheet table more accurately.