Professional Documents
Culture Documents
JANUARY 2015
________________________________________________________________________
INSTRUCTIONS TO STUDENTS
1. This assignment contains question that is set in English.
2. Answer in English only.
3. Your assignment should be typed using 12 point Times New Roman font and
1.5 line spacing.
4. You must submit your hardcopy assignment to your Facilitator and ONLINE via the MyVLE. Refer to the portal for instructions on the procedures to
submit your assignment on-line. You are advised to keep a copy of your
submitted assignment and proof of the submission for personal reference.
Your assignment must be submitted on 21st 29th March 2015.
5. Your assignment should be prepared individually. You should not copy another
persons assignment. You should also not plagiarise another persons work as
your own.
EVALUATION
This assignment accounts for
BMAC5203/JAN15/A-RR
ASSIGNMENT QUESTION
Task 1
Objective
Activity-Based Costing
To enable the learner to differentiate between
traditional costing and activity based costing in
decision making.
Basic (RM)
40
Super (RM)
60
15
20
Direct material
The total overhead are RM1,000,000
Based on experience over recent years, in the forthcoming year the business
expects to make and sell 40,000 units Basic and 10,000 units Super.
Recently, the management has undertaken an exercise to identify cost drivers
based on various activities. The finding has revealed the following annual
overhead:
Activity (and cost driver)
Cost (RM)
000
Total
Number of machine set-ups
Number of quality-control
280
220
100
2,000
20
500
Super
80
1,500
inspections
Number of sales orders
240
5,000
1,500
3,500
processed
General production (machine
260
500,000
350,000
150,00
hours)
Total
Basic
0
1,000
BMAC5203/JAN15/A-RR
Required:
a)
Determine the full cost and selling price of each of the two products based
on the present costing system.
(10 marks)
b)
Determine the full cost and selling price of each product using activitybased costing, taking into account the managements recent investigation.
(10 marks)
c)
Task 2
Objective
15,000 units
June
20,000 units
July
30,000 units
August
40,000 units
September
50,000 units
October
35,000 units
November
25,000 units
BMAC5203/JAN15/A-RR
ii.
iii.
The management at Berjaya Sdn. Bhd. decided that the ending inventory
in units and it is equal to 20% of the following months budgeted sales.
ii.
Cost of Goods sold is computed based on the unit production cost RM5.79
per unit.
ii.
iii.
BMAC5203/JAN15/A-RR
iv.
v.
RM
Equipment
458,047.50
150,200
Ordinary Shares
500,000
Retained earnings
335,777.50
Required:
To prepare the whole master budget (Sales budget up to budgeted Statement of
Financial Position) for Berjaya Sdn. Bhd. for July, August and September.
(40 marks)
Task 3
Objective
enable
the
learner
to
identify
relevant
and
BRICKS
TILES
TOTAL
(000)
RM500
250
250
(000)
RM800
480
320
(000)
RM150
140
10
RM1450
870
580
10
37
53
100
RM 150
10
40
40
90
RM230
10
35
10
55
RM(45)
30
112
103
245
RM3
35
12
5
RM210
BMAC5203/JAN15/A-RR
This is the third consecutive year that the tiles segment is reporting losses. The
managing director is considering dropping the product line as it would mean
saving RM45,000 by dismissing the lines supervisor and also eliminating
depreciation.
a. Do you agree that the tiles division should be closed based on the above
information?
(14 marks)
b. What qualitative factors should be considered before a decision on
whether to keep or drop a product.
(6 marks)
c. The marketing manager suggested that if the tile product is dropped, sales
and variable costs of blocks would reduce by 10%, and sales and variable
costs of bricks by 8% since customers tend to buy all three products
together. Hence if the tile product is dropped, customers will buy blocks
and bricks elsewhere. Does this mean it is better to keep the tile product
line?
(10 marks)
(TOTAL: 100 MARKS)