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Maf251 q Test2 June2022
Maf251 q Test2 June2022
Maf251 q Test2 June2022
INSTRUCTIONS TO CANDIDATES
3. Please save your answer scripts in ONE (1) pdf file and rename to:
(NAME_STUDENT ID_CLASS)
1
QUESTION 1
Pes Kari Sdn Bhd produces and sells curry paste in packet to local markets at RM10
each. For many years the company is operating at 100% capacity which is 30,000
packets of curry paste per month.
Currently the company purchase the main ingredient, chili powder from supplier. One
packet of curry paste required 0.1 kg of chili powder. Due to the current economic
situation, the supplier will increase the price of chili powder by 20% from the current
price of RM10 per kg by next month. Beside the purchase price, Pes Kari Sdn Bhd has
to incur quality control cost RM0.50 per kg. The management of the company has
requested the production department to estimate the cost of producing the chili powder if
they plan to produce it for next month.
If the production manager of the company decides to produce chili powder for next
month, the following factors are to be considered:
1. The company has to sacrifice 10% of its production of curry paste.
2. Fixed production overheads costs will increase by RM10,000.
3. Transportation cost RM3,000 from supplier’s chili powder premises could be
saved.
Required:
a. Calculate the contribution margin loss from the sales of curry paste for next
month.
(3 marks)
b. Calculate the relevant cost of making and buying chili powder for next month.
(12 marks)
c. Advise Pes Kari Sdn Bhd whether to make or to buy the chili powder from
supplier next month.
(2 marks)
d. Determine THREE (3) qualitative factors should Pes Kari Sdn Bhd consider in
determining whether to make or buy the chili powder.
(3 marks)
(Total: 20 marks)
2
QUESTION 2
Aurah Fashion Sdn Bhd manufactures and sells 3 designs of premium muslimah hijab.
The management accountant has forecasted the following sales and production data for
the next quarter year 2022.
1.
Design Pretty Beauty Lovely
Anticipated sales demand (units) 5,000 4,000 3,000
Selling price (RM/unit) 120 140 80
Cost per unit:
Direct material (RM/unit) 45 50 30
Direct labour (RM/unit) 30 35 15
Variable overhead (RM/unit) 15 10 10
2. Design Pretty and Beauty used the same fabric, which is satin while Lovely used
fabric chiffon. The amount of materials available for the firm for the period are as
follows:
Satin 20,000 meters at a price of RM25 per meter.
Chiffon 10,000 meters at a price of RM15 per meter
3. The total labour hour available to the firm for the period are 33,000 hours. Direct
labour will be paid RM10 per hour worked.
Required:
a. Determine whether material satin, chiffon or labour will be the limiting factor for
the period.
(3 marks)
b. Determine the optimum sales and production mix for the period under the
constraint calculated in (a) above.
(12 marks)
c. Calculate the maximum profit with the production mix calculated in (b) above.
(2 marks)
d. Explain why the ranking of production is based on contribution per key factor
instead of contribution per unit and identify TWO (2) factors that could give
constraint in production.
(3 marks)
(Total: 20 marks)