1. Mazoon Traders LLC manufactures two different types of gadgets, Media pad and Yoga pad. The company relies on activity based costing system. Products Media pad Yoga pad 12,500 Units of Production Direct labor hours Number of orders placed 7.100 540 920 35 32 Machine set up hours 35 32 45 35 No. of Deliveries No.of production runs 15 12 Machine set up costs 38,500 Machine running costs 48,500 Procurement costs 48,000 Delivery costs 37,800 You are required to calculate the cost per unit of Media pad and Yoga pad under ABC (2 marks) and Traditional costing method (2 marks) methods. Compare the cost per unit of production and suggest which costing method is good (1 marks). (5 Marks) 2. Al Lama Traders manufactures kid's toys. It makes two products: battery bike and gaming pad in production plant named 'star kids'. The products details, sales plan and forecast are shown in the table. 2nd Quarter 3rd Quarter Units 4th Quarter Units Units Product 1st Quarter Units Battery bike 6,800 Game pad 9,300 13,200 11,400 10,500 14,600 13,200 12,500 Assume that the selling price is OMR 30 per unit for battery bike and OMR 22 per unit for game pad. Average sales return is 10% of total sales and the discounts and bad debts amounting to 2% of the total sales. i) You are required to prepare a Sales Budget for the year 2022. (4 Marks) ii) Assume that the company expects a competitor to enter into the market. In such case, the sale of total units in each product is expected to decrease by 8%. However, the management wants retain the total sales value. Analyse and suggest a suitable way to achieve this sales target. (1 Mark) 3. Nizwa Traders is a manufacturing company which has two production plants and produces four different potatoes chips in each plant. Production Plant (1) produces Cheese, Salt, Tomato paste, and Masala:. The estimated stock levels and the sales budget information is available for the year 2020. Nizwa Traders working capital is OMR 290,000, cash balance OMR 75,000 and its total sales budgeted is OMR 300,000. Estimated Sales as per Sales Budget (Units) 5,500 33,600 34,800 32,800 Production Plant (1) Estimated Stock at the Estimated Stock at the end of the Budgeted Beginning of the Budgeted Product Period(Units) Period (Units) 10,500 9,500 Cheese 6,000 9,000 Salt 12,500 11,200 Tomato paste 11.200 12,600 Masala You are required to prepare a separate production budget for the plant.(4 marks) Analyse how the production budget helps to maximise profitability of the organization (1 Mark)