CONFIDENTIAL AC/APR 2018/MAF251
UNIVERSITI TEKNOLOGI MARA
COMMON TEST 1
COURSE : COST AND MANAGEMENT ACCOUNTING
COURSE CODE : MAF251
EXAMINATION : APRIL 2018
TIME : 1 HOUR 30 MINUTES
INSTRUCTIONS TO CANDIDATES
1. This question paper consists of three (3) questions.
2. Answer ALL questions in the Answer Booklet. Start each answer on a new page.
3. Do not bring any material into the examination room unless permission is given by the
invigilator.
4. Please check to make sure that this examination pack consists of :
i) the Question Paper
ii) an Answer Booklet – provided by the Faculty
5. Answer ALL questions in English.
DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO
This examination paper consists of 4 printed pages
© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL
CONFIDENTIAL 2 AC/APR 2018/MAF251
QUESTION 1
a. List FOUR (4) basic activities in the management process.
(2 marks)
b. A management accounting system is an information system that produces the
information required by managers to create value and manage resources.
Required:
i. State FOUR (4) forms of information that could be provided by management
accounting system.
(4 marks)
ii. Explain briefly TWO (2) impacts of using information system.
(4 marks)
(Total: 10 marks)
QUESTION 2
Green Sdn Bhd is manufacturer of self-watering plant pot, VINDURA. The company uses
standard costing system for control and performance evaluation purpose.
The following is the budgeted data relates to the production of VINDURA for the month of
April 2018.
Production and sales (units) 15,000
Sales revenue (RM) 750,000.00
Direct material (RM per unit) 8.75
Direct labour (RM per unit) 12.00
Variable production overhead (RM per hour) 2.00
Total fixed production overhead (RM) 69,750.00
To produce one unit of VINDURA, the expected quantity to be used is 2.5 kg and the
expected rate to be paid for the direct labour is RM8 per hour. The variable production
overhead cost and the fixed production overhead cost are absorbed based on direct labour
hours.
The actual production and sales units for the month of April 2018 is 15,500 units of
VINDURA with the total sales revenue of RM759,500. Total actual direct material used is
37,200 kg at a cost of RM133,920. The company pays RM171,275 for 20,150 direct labour
hours. The actual variable production overhead cost and the actual fixed production
overhead cost for the month of April 2018 is RM42,315 and RM69,000, respectively.
Required:
a. Prepare a standard cost card for one unit of VINDURA.
(4 marks)
© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL
CONFIDENTIAL 3 AC/APR 2018/MAF251
b. Calculate the following variances for the month of April 2018:
i. Direct material price and direct material usage
ii. Direct labour rate and direct labour efficiency
iii. Variable production overhead expenditure and variable production overhead
efficiency
iv. Fixed production overhead expenditure and fixed production overhead volume
v. Sales margin price and sales margin volume
(16 marks)
c. Construct a statement reconciling budgeted net profit and actual net profit for the
month of April 2018.
(3 marks)
(Total: 23 marks)
QUESTION 3
Salmon King Sdn Bhd produces and sells a range of Salmon product namely Deep-fried
Salmon (DS), Grilled Salmon (GS) and Raw Salmon (RS). These salmons are sold in boxes.
To produce these salmons, the company uses high-grade of salmon, namely Sushi Safe and
Sashimi Safe. Sushi Safe is used to produce DS and GS whilst Sashimi Safe is used to
produce RS.
At the end of the first quarter of the year 2018, the salmon’s supplier notifies Salmon King
Sdn Bhd that it might not be able to supply the required quantity of Sushi Safe in the second
quarter of the year 2018. It is reported that the maximum quantity of Sushi Safe and Sashimi
Safe available for the second quarter of the year 2018 is 12,000 kilograms at RM25 per
kilogram and 5,500 kilograms at RM50 per kilogram, respectively. The following is the
information related to the production and sales of DS, GS and RS for the second quarter of
the year 2018:
Deep-fried Grilled Raw
Salmon Salmon Salmon
(DS) (GS) (RS)
Current demand (Boxes) 17,500 9,500 13,000
Price and cost per box: RM RM RM
Selling price 40.00 37.00 42.00
Direct material 12.50 11.25 20.00
Direct labour 12.00 10.00 7.00
In addition to the above costs, Salmon King Sdn Bhd will also incur the following costs:
i. Variable production overhead cost will be charged at 35% of the direct labour cost.
ii. Variable selling and distribution overhead cost will be charged at the rate of 11%, 12%
and 12.5% of the selling price for DS, GS and RS, respectively.
iii. Fixed production overhead cost and fixed selling and distribution overhead cost for the
year 2018 is amounted to RM768,000.
© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL
CONFIDENTIAL 4 AC/APR 2018/MAF251
Required:
a. Compute any excess and/or shortage of the direct material for the second quarter of
the year 2018.
(3 marks)
b. Calculate the contribution margin per box for DS, GS and RS.
(6 marks)
c. Suggest to the management of Salmon King Sdn Bhd on the most optimal mix of
products for the second quarter of the year 2018.
(5 marks)
d. Based on your suggestion in part (c) above, determine the revised net profit of Salmon
King Sdn Bhd for the second quarter of the year 2018.
(3 marks)
(Total: 17 marks)
END OF QUESTION PAPER
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