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(25 marks) Telekong City Bhd (TCB) has organized a new division to manufacture and sell modern Muslimah (ladies) praying attire called as 'telekong'. The division's

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(25 marks) Telekong City Bhd (TCB) has organized a new division to manufacture and sell modern Muslimah (ladies) praying attire called as 'telekong'. The division's monthly costs are shown as below: Manufacturing cost: Variable cost per unit Direct material Variable manufacturing overhead Fixed manufacturing overhead costs RM76.80 RM 3.20 RM576,000 Selling and administrative cost Variable Fixed (total) 12% on sales RM752,000 TCB regards all of its workers as full-time employees and the company has a long-standing no lay-off policy. Furthermore, production is highly automated. Accordingly, the company includes its labor costs in its fixed manufacturing overhead. The 'telekong' is sold at RM320 each. During April, the number of unit produced was 24,000 units, and the number of unit sold was 20,000 units. Required: a) Compute the unit product cost using: i. Absorption costing. ii. Variable costing (6 marks) (CLO3:PLO2C3) b) Prepare the absorption income statement for April. (4 marks) (CLO3:PL02:03) c) Prepare the contribution income statement using variable costing. (4 marks) (CLO3:PLO2:03)

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