(b) (a) Question 1 Tika Bhd has three production departments, Dept A, B, C, and service department canteen for workers. Each job must go through all the three departments. Overheads for forth coming moth is as follows: Allocated Overhead Maintenance cost: Common cost Rental Depreciation Supervision costs COST AND MANAGEMENT ACCOUNTING Mid-Term Exam 1 Hour Dept A Dept B Dept C Canteen Required: Dept A Dept B Dept C Canteen Machine hours 20,000 15,000 5,000 nil Information related to all departments given as follows: Machinery Floor Area value RM12,000 RM10,000 RM 3,000 nil (m) 5,000 RM 1,000 2,000 2,500 500 6,000 3,000 1,000 12,000 2,400 4,000 No. of Operators 30 50 20 nil Prepare an overhead analysis sheet using the apportionment method below to assign the common cost: Rental Depreciation Supervision costs Floor area Machine value No of operators No of operators Canteen cost (reallocation) Note: All calculation must be to the nearest RM (No decimal point) (14 marks) Calculate departmental overhead absorption rates based on machine hours. Note: All calculation must be to the nearest 2 decimal point (6 marks) (Total:20 marks) Question 2 Maria Enterprise produces single product, which has the following production cost per unit: Direct material Direct labour Variable overhead The budgeted fixed production overhead per month is RM45,000. Besides the production cost the company incurred the following cost too: RM 10.00 12.00 8.00 Variable selling administrative cost RM 5.00 per unit RM 15,000 per month Fixed selling and administrative cost The selling price is RM RM55.00 per unit. Monthly target sales volume is 8,000 units. Calculate: (a) Explain the meaning of break-even point and the importance of knowing it. (2 marks) (b) Contribution per unit (c) Break-even point in sales volume (d) The target profit at the target monthly sales volume of 8,000 units. (2 marks) (2 marks) (2 marks) (e) The expected sales volume to achieve a profit of RM180,000 per month. (2 marks) (f) If Maria Enterprise wishes to increase the sales volume by decreasing the selling price by RM2.00, what would be the required sales volume to achieve the same target profit in part (d) above. (5 marks) (Total: 15 marks)