QUESTION 2 (CHAPTER 3) A Umar and Osman manufacture and sell energy drinks. The drinks are sold for RM9.10 a bottle to the distributor. The data below is related to the product of energy drinks in 2021. Units production 150,000 120,000 RM RM Direct materials Bottles Direct labour cost Manufacturing factory rental Manufacturing factory utilities Management salaries Administrative expenses Delivery costs Factory Supervisors Salaries Salesman salary Depreciation factory equipment Advertising expense Total 55,500 18,000 24,000 6,700 28,600 44,400 14,400 19,200 6,700 23,200 21,000 29,000 5,300 8,000 21,000 29,000 4,700 8,000 17,900 3,600 22,100 3,600 1,000 1,000 222,800 193,100 REQUIRED: » Identify the cost behavior for each item cost. (CLO3, C3) i) Calculate the variable cost per unit and the fixed cost for each mixed cost. (CLO3, C3) i) Determine the cost of direct material and salesman salary if the company produces *XX,XXX (80,000-90,000) bottles of drink. (CLO3, C3) iv If production unit is *XXXXX (90,000 – 110,000): (CLO3, C3) a) Calculate total product cost b) Calculate total period cost v) Form cost function for: (CLO3, C3) a) Product cost b) Period cost
QUESTION 2 (CHAPTER 3) A Umar and Osman manufacture and sell energy drinks. The drinks are sold for RM9.10 a bottle to the distributor. The data below is related to the product of energy drinks in 2021. Units production 150,000 120,000 RM RM Direct materials Bottles Direct labour cost Manufacturing factory rental Manufacturing factory utilities Management salaries Administrative expenses Delivery costs Factory Supervisors Salaries Salesman salary Depreciation factory equipment Advertising expense Total 55,500 18,000 24,000 6,700 28,600 44,400 14,400 19,200 6,700 23,200 21,000 29,000 5,300 8,000 21,000 29,000 4,700 8,000 17,900 3,600 22,100 3,600 1,000 1,000 222,800 193,100 REQUIRED: » Identify the cost behavior for each item cost. (CLO3, C3) i) Calculate the variable cost per unit and the fixed cost for each mixed cost. (CLO3, C3) i) Determine the cost of direct material and salesman salary if the company produces *XX,XXX (80,000-90,000) bottles of drink. (CLO3, C3) iv If production unit is *XXXXX (90,000 – 110,000): (CLO3, C3) a) Calculate total product cost b) Calculate total period cost v) Form cost function for: (CLO3, C3) a) Product cost b) Period cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Please solve part (i) to part (iii)
Transcribed Image Text:QUESTION 2 (CHAPTER 3)
A. Umar and Osman manufacture and sell energy drinks. The drinks are sold for RM9.10
a bottle to the distributor. The data below is related to the product of energy drinks
in 2021.
Units production
150,000
120,000
RM
RM
55,500
18,000
24,000
Direct materials
44,400
Bottles
14,400
Direct labour cost
19,200
Manufacturing factory rental
Manufacturing factory utilities
Management salaries
Administrative expenses
Delivery costs
Factory Supervisors Salaries
Salesman salary
Depreciation factory equipment
Advertising expense
6,700
28,600
21,000
29,000
5,300
8,000
22,100
6,700
23,200
21,000
29,000
4,700
8,000
17,900
3,600
1,000
3,600
1,000
222,800
Total
193,100
REQUIRED:
) Identify the cost behavior for each item cost. (CLO3, C3)
i) Calculate the variable cost per unit and the fixed cost for each mixed cost. (CLO3,
C3)
i) Determine the cost of direct material and salesman salary if the company produces
*XX,XXX (80,000-90,000) bottles of drink. (CLO3, C3)
iv) If production unit is *XXXXX (90,000 – 110,000): (CLO3, C3)
a) Calculate total product cost
b) Calculate total period cost
v) Form cost function for: (CLO3, C3)
a) Product cost
b) Period cost
"substitute the XXXXXX with your own amount according to the range given
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