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KUALA LUMPUR
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Name : gbhdhfh
Student ID No : 23525
Subject Code & Title : ABMC2054 Cost & Management Accounting I
Programme/Year of Study : DAC 2 S1

INSTRUCTIONS TO CANDIDATES

1. You are required to download this Microsoft Excel Answer Booklet and use it on your
desktop.
2. You are required to type your answers for ALL the questions using the font type of Times
New Roman and the font size of 12.
3. You will need to open your Google Drive to do some settings. Click on the ‘Settings’ on
Google Drive, and select the first option ‘Settings’.  
4. In the ‘Settings’ window, under the ‘General’ section, uncheck/untick the box for ‘Convert
uploads’. This is to prevent your Microsoft Excel Answer Booklet from being automatically
converted into a Google spreadsheet.
5. Your Microsoft Excel Answer Booklet should be named using your full name, followed by the
subject code. [ie. Tan Ah Kau (ABMC2054)
6. Once you have completed typing your answers, upload your Microsoft Excel Answer Booklet
into your Google Forms.
7. Click on the Google Form attached in the Assignment section of the Google Classroom to
register yourself.
8. At the ‘Answer’ section, click ‘Add File’ to upload your Microsoft Excel Answer Booklet.
Then click ‘Submit’.
9. Submission in Google Form will be closed at 30 September 2020, 6PM sharp. 
10. Any late submission will not be accepted or marked.

FOR EXAMINER'S USE ONLY

QUESTION
MARKS
NUMBER
INTERNAL EXTERNAL
QUESTION 1
QUESTION 2
QUESTION 3
QUESTION 4

TOTAL
Name: gbhdhfh
Student ID No: 23525
Subject Code & Title: ABMC2054 Cost & Management Accounting I
Programme/Year of Study: DAC 2 S1

Type answers on this side of the page only

Question 1

(a)

Total A B C Stores Maintenance

Overheads RM Basis of Apportionment RM RM RM RM RM
Indirect materials 40000 Given 13000 11000 9000 4000 3000
Indirect wages 30000 Given 10000 5000 4000 6000 5000
Heat and light 18000 Floor area (square metre) 5625 4500 3375 2250 2250
Plant insurance 14000 Plant valuation (RM) 1458.33 1750 1458.33 8750 583.33
Canteen costs 7000 Number of employees 2333.333 1944.444 1555.556 777.78 388.89
109000 32417 24194 19389 21778 11222

Reapportionment
Basis of Total A B C Stores Maintenance
apportionment RM RM RM RM RM RM
Previously cost allocated 109000 32417 24194 19389 21778 11222

Reapportionment from
service to production:
Stores Material requisitions 8066 6452.741 7259 (21778)
Maintenance Machine hours 3507 4208 3507 (11222)
109000 43989 34855 30155 0 0

(b) Department A

Departmental OAR= Budgeted overhead (RM) / Budgeted activity level

= RM43989 / 10000 machine hours
= RM 4 per machine hour

Department B

Departmental OAR= Budgeted overhead (RM) / Budgeted activity level

= RM34855 / 12000 machine hours
= RM 3 per machine hour

Department C

Departmental OAR= Budgeted overhead (RM) / Budgeted activity level

= RM30155 / 10000 machine hours
= RM 3 per machine hour
c) Departmental overhead absorption rate is more preferable to blanket overhead absorption rate because it
result in more accurate production costing. It match the costs with the activities or basis that are are
closely reflect the nature of the particular department.
This column is for
marker’s use only
Name: gbhdhfh
Student ID No: 23525
Subject Code & Title: ABMC2054 Cost & Management Accounting I
Programme/Year of Study: DAC 2 S1

Type answers on this side of the page only This column is for
marker’s use only
Question 2

(A)
(a) Gemma Sdn Bhd
Standard Cost Card
RM RM
Direct materials:
Y (5kg*RM2 per kg) 10
Z (2 metres*RM 5 per metre) 10 20

Direct labour:
Skilled labour (3 hours*RM15) 45
Unskilled labour (6 hours*RM3) 18 63
Standard direct cost 83
Variable production overhead (RM3*3hours) 9
Standard variable cost of production 92
Fixed production overhead (RM3.33*3 hours) 10
Standard full production cost 102
Administration, selling and distribution overheads 20
Standard cost of sale 122
Standard profit (RM122*15%) 18.3
Standard sales price 140.3

Working:
Fixed production OAR = Budgeted overhead (RM) / Budgeted activity level
= RM100000 / (10000 units*3 hours)
= RM 3.33 per direct skilled labour hour

(b) The importance of human aspects in standard costing should not be ignored .
The success of implementing a standard costing system is dependent upon the
co-operation of all level of management of the company who must be motivated to work hard to
attain the standards set so that the company objectives is achievable .
Active people participation, realistic standards, prompt and accurate reporting and
no undue pressure of punishment will contribute to an acceptable workable standard costing system.

(B)

(a) (i) Variable cost per unit = Different in cost / Different in units

Budgeted variable overheads per tonne = (RM284000-RM220000) / (10000 tonnes-6000 tonnes)

= RM 16 per tonne

(ii) Total costs= Total Fixed Cost + Total Variable Cost

 At 10000 tonnes, Budgeted fixed overheads = Total budgeted overheads-Total variable overheads
= RM284000 - (RM16*10000tonnes)
= RM 124000

(b) (i) Fixed overhead expenditure variance = Budgeted overhead - Actual overhead
= RM124000-RM129000
= RM -5000 (Adverse)

(ii) Fixed overhead volume variance = (Actual volume - Standard Volume)*OHAR

= (7500-6000)*RM25
= RM 37500 (Favourable)
Name: gbhdhfh
Student ID No: 23525
Subject Code & Title: ABMC2054 Cost & Management Accounting I
Programme/Year of Study: DAC 2 S1

Type answers on this side of the page only This column is for
marker’s use only
Question 3

(a)

Costs Cost per unit (RM) Cost per unit (RM) Cost per unit (RM) Cost behaviour
Materials 3 3 3 Variable
Wages 2.5 2.5 2.5 Variable
Depreciation 8,000 8,000 8,000 Fixed
Power 1.7 1.64 1.58 Semi-variable
Salaries 17,000 17,000 17,000 Fixed
Transportation 1.6 1.59 1.58 Semi-variable

Workings:

Power
Output (units) Total cost (RM)
High 12,000 19,000
Low 10,000 17,000
Differece 2,000 2,000

Variable cost per unit (RM) = Different in cost / Different in output

= RM 1 per tonne

At 12000 units, Total cost (RM) = Total fixed cost + Total variable cost
Total fixed cost (RM) = Total cost - Total variable cost
= RM19000-(12000units*RM1)
= RM 7,000

Transportation
Output (units) Total cost (RM)
High 12,000 19,000
Low 10,000 16,000
Differece 2,000 3,000

Variable cost per unit (RM) = Different in cost / Different in output

= RM 1.5 per tonne

At 12000 units, Total cost (RM) = Total fixed cost + Total variable cost
Total fixed cost (RM) = Total cost - Total variable cost
= RM19000-(12000units*RM1.50)
= RM 1,000
(b)
Flexible Budget for the actual activity level at 11600 units for August 2020
RM RM
Materials 34,800
Wages 29,000
Depreciation 8,000
Power
-Fixed 7,000
-Variable 11,600 18,600
Salaries 17,000
Transportation
-Fixed 1,000
-Variable 17,400 18,400
Total budgeted cost 125,800

c) Statement of Variances
At 11600 units
Costs Budget Cost Actual Cost Variances
Materials 34,800 35,000 -200 Adverse
Wages 29,000 33,000 -4,000 Adverse
Depreciation 8,000 8,000 0
Power 18,600 17,800 800 Favourable
Salaries 17,000 17,200 -200 Adverse
Transportation 18,400 17,600 800 Favourable
Total 125,800 128,600 -2,800 Adverse

d) Flexible budgets are appropriate to be used when there is at the initial planning stage. Besides,
flexible budgets can also be used for control purposes. At the performance review stage,
flexible budget will be flexed to the actual activity level, giving rise to more meaningful
variances that show realistic cost savings or excesses.

Human aspects will impact behaviour when designing a standard costing system. This is because
the implementation of standard costing system is dependent on the cooperation of all level of
management of the company. The employees must be motivated to work hard so that they can
attain the standards set by company and achieve company's objectives.
Name: gbhdhfh
Student ID No: 23525
Subject Code & Title: ABMC2054 Cost & Management Accounting I
Programme/Year of Study: DAC 2 S1

Type answers on this side of the page only This column is for
marker’s use only
Question 4

(a)
FF Sdn Bhd
Budgeted Income Statement for financial year 2021 using marginal costing method
RM RM
Sales (RM50*60000 units) 3,000,000

Less: Variable Cost of Sales @RM14 per unit

Opening inventory (15000 units*RM14) 210,000
Production Cost (65000 units*RM14) 910,000
Less: Closing inventory (20000 units*RM14) (280000) (840000)
2,160,000
Less: Variable selling costs (RM1.50*60000 units) (90000)
Total Contribution 2,070,000
Less: Fixed Costs
Fixed Production overheads 200,000
Fixed Selling costs 400,000 (600000)
Net profit 1,470,000

Working:

Closing inventories = Opening inventories + production - sales

= 20,000 units

Fixed production OAR = Budgeted overhead (RM) / Budgeted Activity level

= RM200000/40000 units
= RM 5 per unit

(b) Reconciliation
RM
Net profit as per marginal costing 1,470,000

Increase in inventory
(20000 units-15000 units) 5000 units
*FOAR *RM5/unit 25,000
Net profit as per absorption costing 1,495,000

c) The effect of absorption costing and marginal costing in inventory in inventory valuation is because of the
treatment of fixed overhead. Absorption costing take account of the fixed cost in th production cost.
However, in marginal costing, fixed overhead are treated as non-production costs, which are period costs.
For profit determination, if stock level increase, closing inventories will be higher than the opening inventori
, absorption costing will give higher profit. This is because the fixed overheads in the closing inventories will
be carried forward to the next accounting period thus it will reduce the cost of sales. But for marginal costing
, it gives lower profit as stock increase because it written of the fixed overhead in the current accounting
period. In contrast, if stock level increase, closing inventories will be lower than the opening inventories,
marginal costing will give higher profit than absorption costing. This is because in absorption costing, the
fixed overhead thaty brought forward to the opening inventories is released, thus it will increase the cost of
sales and reduce the profit. If the inventories remain constant, both absorption costing and marginal costing
will gives same profit.
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