Haitek Bhd manufactures and sells home-freezer and uses standard costing. Actual data relating to March, April and May 2021 are as follows: Month | Beginning Production Iaventory Sales March 3,000 2,400 April May 2,600 3,300 600 2,600 600 3,450 Other related actual data : Manufacturing cost per unit produced . . RM550 Marketing cost per unit sold . . Fixed Manufacturing costs per month . . RM320,000 Fixed Operating & marketing costs per month ... RM95,000 Selling price per unit... RM200 ........ RM1,700
Haitek Bhd manufactures and sells home-freezer and uses standard costing. Actual data relating to March, April and May 2021 are as follows: Month | Beginning Production Iaventory Sales March 3,000 2,400 April May 2,600 3,300 600 2,600 600 3,450 Other related actual data : Manufacturing cost per unit produced . . RM550 Marketing cost per unit sold . . Fixed Manufacturing costs per month . . RM320,000 Fixed Operating & marketing costs per month ... RM95,000 Selling price per unit... RM200 ........ RM1,700
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:QUESTION 2
Haitek Bhd manufactures and sells home-freezer and uses standard costing. Actual data relating to
March, April and May 2021 are as follows:
Month
Beginning Production
Sales
Inventory
March
3,000
2,400
April
Мay
600
2,600
2,600
600
3,300
3,450
Other related actual data :
Manufacturing cost per unit produced . . RM550
Marketing cost per unit sold..
Fixed Manufacturing costs per month . RM320,000
Fixed Operating & marketing costs per month ... RM95,000
Selling price per unit..
RM200
RM1,700
The budgeted level of production used to calculate the predetermined fixed manufacturing cost
per unit is 3,000 units. Any under/over applied fixed manufacturing cost due to change in
production volume is charged to the cost of goods sold of the month it occurs. Assume there is
no other variances related to fixed manufacturing.
REQUIRED:
(a) Prepare income statements for Haitek in March, April and May 2021 under
(i) variable costing
(ii) absorption costing
(b) Explain the difference in operating
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