Enjin Vroom Sdn Bhd operates a factory at the Senawang Industrial Zone that manufacture micron filter for diesel engine. The data given below are for costs in year 2018 for producing and selling 2900 units of the micron filter. Currently, each micron filters been sold at RM180. Direct labour RM 84000 Direct materials RM 60000 Variable manufacturing overhead RM ? Fixed manufacturing overhead RM 39000 Variable selling & administrative costs RM 8400 Fixed selling & administrative costs RM 12000 Format a) Given that the manufacturing cost per unit is RM110, calculate the VARIABLE manufacturing overhead costs in year 2018. : 394000 b) Using the that you have calculated in part (a), compute the following: Format i. Total variable costs : 527300 Format ii. Total variable costs per unit : 86.96 Format iii. Total costs : 527500 c) Based on the current selling price set by the company, calculate the following: Format i. Profit per unit for the sold micron filter. : 23.82 Format ii. Contribution margin per unit of the micron filter : 50.48 Format iii. Break-even sales amount : 545358

Enjin Vroom Sdn Bhd operates a factory at the Senawang Industrial Zone that manufacture micron filter for diesel engine. The data given below are for costs in year 2018 for producing and selling 2900 units of the micron filter. Currently, each micron filters been sold at RM180. Direct labour RM 84000 Direct materials RM 60000 Variable manufacturing overhead RM ? Fixed manufacturing overhead RM 39000 Variable selling & administrative costs RM 8400 Fixed selling & administrative costs RM 12000 Format a) Given that the manufacturing cost per unit is RM110, calculate the VARIABLE manufacturing overhead costs in year 2018. : 394000 b) Using the that you have calculated in part (a), compute the following: Format i. Total variable costs : 527300 Format ii. Total variable costs per unit : 86.96 Format iii. Total costs : 527500 c) Based on the current selling price set by the company, calculate the following: Format i. Profit per unit for the sold micron filter. : 23.82 Format ii. Contribution margin per unit of the micron filter : 50.48 Format iii. Break-even sales amount : 545358

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Enjin Vroom Sdn Bhd operates a factory at the Senawang Industrial Zone that manufacture micron filter for diesel engine. The data given below are for costs in
year 2018 for producing and selling 2900 units of the micron filter. Currently, each micron filters been sold at RM180.
Direct labour RM 84000
Direct materials RM 60000
Variable manufacturing overhead RM ?
Fixed manufacturing overhead RM 39000
Variable selling & administrative costs RM 8400
Fixed selling & administrative costs RM 12000
Format
a) Given that the manufacturing cost per unit is RM110, calculate the VARIABLE manufacturing overhead costs in year 2018.
: 394000
b) Using the that you have calculated in part (a), compute the following:
Format
i. Total variable costs
: 527300
Format
ii. Total variable costs per unit
: 86.96
Format
iii. Total costs
: 527500
c) Based on the current selling price set by the company, calculate the following:
Format
i. Profit per unit for the sold micron filter.
: 23.82
Format
ii. Contribution margin per unit of the micron filter
: 50.48
Format
iii. Break-even sales amount
: 545358
d. Due to change of supplier, the direct materials cost has increased by 10%. The company's new lean manufacturing practice
has successfully reduced the fixed manufacturing overhead expenses by RM10,000 per year. Calculate the new breakeven
units.
Format
: 288

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