BAC1054
PRINCIPLES OF MANAGEMENT ACCOUNTING
TRIMESTER 1, 2022/2023(2215)
ASSIGNMENT 2

LECTURER      : ABDULLAH SALLEHUDDIN BIN ABDULLAH SALIM

NAME : NATIYA A/P GUNASEKARAM
STUDENT ID : 1211306947
 Tri 1, 2022/2023 (2215) 
BAC 1054: ASSIGNMENT 2
Solution:

Question 1
Particulars Amount
Payment for the purchases in March(400 000 x 60%)* 240 000

Payment for the purchases in April(500 000 x 40%)* 200 000

Wages expenses 120 000

Purcahses of office equipment 200 000

Selling and admistrative expenses 126 000

Total amount of budgeted cash disbursements for April. 906 000

*Payment for the purchases in March

(RM 400 000 x 60%)

=RM 16 0000

=RM 400 000 – RM160 000

=RM 240 000

*Payment for the purchses in April

(RM 500 000 X 40%)

=RM 300 000

=RM 500 000 -RM 300 000

=RM 200 000

Question 2

(a) Determine the standard direct labor hours per tune-up

Actual service time = 1.0 hours

Setup and downtime(10% of actual labor time) = 0.1 hours
Clean and rest period(20% of actual labor time) = 0.2 hours
Standard direct labor hours per tune-up = 1.3 hours

(b) Determine the standard direct labor hourly rate.

Hourly wage rate = RM 16

Payroll taxes(RM 16 X 10%) = RM 1.60
Fringe benefit(RM 16 X 25%) = RM 4.00
Standard direct labor hourly rate = RM 21.60

(c) Determine the standard direct labor cost per tune-up.

Standard direct labor cost per tune-up= 1.30 hours X Rm21.60/per hour
= RM 28.08

(d) If a tune-up took 1.5 hours at the standard hourly rate, what was the direct labor

quantity variance?

Direct labor quantity variance =(1.50 hours X RM 21.60) – (1.30 hours X RM 21.60)
=(32.40) – (28.08)
=4.32