(a) Rayya Sdn. Bhd. produces two types of cakes: butter cake and chocolate cake. Of the two, chocolate cake is the more popular. The following information was provided for the coming year. Details Table 5: Production Costs Sales Variable cost of goods sold Direct fixed overhead Butter Cake RM 80,000 10,000 20,000 Chocolate Cake RM 180,000 30,000 100,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Develop a segmented income statement for Rayya Sdn. Bhd. for the coming year using
variable costing. 

 

(a) Rayya Sdn. Bhd. produces two types of cakes: butter cake and chocolate cake. Of the
two, chocolate cake is the more popular. The following information was provided for
the coming year.
●
Details
Additional information:
●
Table 5: Production Costs
Sales
Variable cost of goods sold
Direct fixed overhead
Butter Cake
RM
80,000
10,000
20,000
Chocolate Cake
RM
180,000
30,000
100,000
Sales commission of 5% of sales revenue is paid for each cakes.
Direct fixed selling and administrative expenses was estimated to be RM4,000 for
the butter cake and RM10,000 for the chocolate cake.
Common fixed overhead associated with owning the company was estimated to be
RM18,000.
Common selling and administrative expenses was estimated to be RM8,000.
Transcribed Image Text:(a) Rayya Sdn. Bhd. produces two types of cakes: butter cake and chocolate cake. Of the two, chocolate cake is the more popular. The following information was provided for the coming year. ● Details Additional information: ● Table 5: Production Costs Sales Variable cost of goods sold Direct fixed overhead Butter Cake RM 80,000 10,000 20,000 Chocolate Cake RM 180,000 30,000 100,000 Sales commission of 5% of sales revenue is paid for each cakes. Direct fixed selling and administrative expenses was estimated to be RM4,000 for the butter cake and RM10,000 for the chocolate cake. Common fixed overhead associated with owning the company was estimated to be RM18,000. Common selling and administrative expenses was estimated to be RM8,000.
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