Am Berhad is a company producing tables. After discussing with the marketing manager, the production manager planning to focus on producing a product named AFI. The marketing manager is observing on two states, Selangor and Pahang, the sales at both states is expected to be RM500,000 an RM810,000 respectively. Information related to the cost per unit of the production for both states are as follows: SELANGOR (RM) PAHANG (RM) Selling price Direct material 100 135 40 45 Direct labour 10 15 Overhead 20 30 50% of the overhead in SELANGOR and PAHANG are fixed. 1.Classify the cost incurred into variable cost per unit and total fixed cost for both states.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Am Berhad is a company producing tables. After discussing with the marketing manager, the
production manager planning to focus on producing a product named AFI. The marketing
manager is observing on two states, Selangor and Pahang, the sales at both states is
expected to be RM500,000 an RM810,000 respectively. Information related to the cost per
unit of the production for both states are as follows:
SELANGOR (RM)
PAHANG (RM)
Selling price
Direct material
100
135
40
45
Direct labour
10
15
Overhead
20
30
50% of the overhead in SELANGOR and PAHANG are fixed.
1.Classify the cost incurred into variable cost per unit and total fixed cost for both states.
Transcribed Image Text:Am Berhad is a company producing tables. After discussing with the marketing manager, the production manager planning to focus on producing a product named AFI. The marketing manager is observing on two states, Selangor and Pahang, the sales at both states is expected to be RM500,000 an RM810,000 respectively. Information related to the cost per unit of the production for both states are as follows: SELANGOR (RM) PAHANG (RM) Selling price Direct material 100 135 40 45 Direct labour 10 15 Overhead 20 30 50% of the overhead in SELANGOR and PAHANG are fixed. 1.Classify the cost incurred into variable cost per unit and total fixed cost for both states.
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