DIM2183 MANAGERIAL ACCOUNTING

Answer any FIVE (5) out of six (6) questions. Each question carries 20 marks
[100 MARKS]
QUESTION 1
Arbon Company has two service departments and two production departments. Following are costs
and other data relating to these department:

Service department Production department

Training Maintenance Assembly Finishing
Overhead costs RM360,000 RM96,000 RM400,000 RM534,000
No. of employees 120 280 630 420
Machine hours - - 30,000 60,000

The company allocates service department costs in the following order and using the bases
indicated: training based on number of employees and maintenance based on machine hours.

Required:
Use the step method to allocate service department costs to the operating departments.
(20 marks)

QUESTION 2

Date Detail Units Unit price Total RM

Jan 2024 RM RM
1 Opening 100 9.00 900
Inventory
5 Purchases 600 10.00 6,000
7 Purchases 350 11.00 3,850
10 Sold 430
17 Sold 550
24 Purchases 600 11.50 6,900
29 Sold 510

Required
Based on the above inventory movements in month of January 2024, prepare the inventory
valuation using first in first out (FIFO) method. (20 marks)

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QUESTION 3
Food Foodie Restaurant specializes in two products which are nasi goreng and nasi ayam. Due
to its location, its customer are mainly students of private college.
Nasi Goreng Nasi Ayam
Selling price per plate (RM) 4 5
Variable costs per plate (RM) 2 3
Number of plate 60,000 40,000
Fixed cost RM135,000

Required
(a) What is the break-even point in units for each of the product? (10 marks)
(b) Compute the break-even point if Food Foodie sells only
(1) Nasi goreng (2 marks)
(2) Nasi ayam (2 marks)
(c) How much is the profit when the restaurant sells 30,000 plates of nasi goreng and 15,000
plates of nasi ayam. (6 marks)

QUESTION 4

CBK Bike manufacturers bicycles for children. Production and sales data for the most recent year
are as follows (assume that there is no beginning inventory):

Selling price RM150 per bike

Variable production cost RM80 per bike
Variable selling and administrative cost RM20 per bike
Fixed production cost RM299,000
Fixed selling and administrative cost RM350,000
Production 15,000 bikes
Sales 12,000 bikes

Assume the company utilizes 13,000 bikes as its normal units to allocate fixed production costs.

Required
Prepare income statement using absorption costing and marginal costing. (20 marks)

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DIM2183 MANAGERIAL ACCOUNTING

QUESTION 5

Malati runs a small factory in Tangkak, producing murukku chips. She normally sells 10,000
packets at RM5.00 per packet. She is now planning for the next month, and the following
information given:

- The raw material required is 1,000 kg of murukku flour at a cost of RM1.30 per kg.
- The labour rate is RM3.00 per hour and each packet takes 0.25 hours.
- The manufacturing overhead is charged at RM0.80 per packet.
- The following stock level are maintained:

Opening Stock Closing stock

Raw materials 100kg 120kg
Murukku chips 80 packets 70 packets

Required
For the month ending 31 March 2024, calculate the following:
(a) Sales budget (2 marks)
(b) Production budget (4 marks)
(c) Raw material budget (6 marks)
(d) Direct labour budget (2 marks)
(e) Manufacturing overhead budget (2 marks)
(f) Cost of Sales budget (4 marks)

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DIM2183 MANAGERIAL ACCOUNTING

QUESTION 6

RAA Company is planning to produce 800,000 electric mixers for the coming year. Each mixer
requires one-half standard hour of labour for completion.
The company uses direct labour hours to assign overheads to products. The total overhead
budgeted for the following year is RM1,120,000 and the standard fixed overhead rate is RM0.55
per unit produced.
Actual results for the year are as follows:

Actual production (units) 786,000

Actual direct labour hours 390,000
Actual variable overhead RM695,000
Actual fixed overhead RM430,000

Required
Compute:
(a) Variable Overhead spending (8 marks)
(b) Variable overhead efficiency variances (4 marks)
(c) Fixed overhead spending (4 marks)
(d) Fixed overhead volume variances (4 marks)

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