b. HM Sdn Bhd wants to classify costs for the product produced at its facility. The company produces only one product at the facility and operates continually. The cost categories used in the company include Product cost, Prime cost, Conversion cost The following costs are found in the ledger: a. Line quality control inspection wages b. Raw material purchases Sales commissions d. Factory depreciation e. Assembly wages Required: C. Assign each of the above costs to the most appropriate cost categories listed below: i. Prime cost (6 marks) ii. Conversion cost (4 marks) Example: Product cost includes a, b, d, and e. Question 5 a. The president of a company has come to you for help. Use the following data to prepare a flexible budget for possible sales/production levels of 10,000, 11,000, and 12,000 units. Show the contribution margin and operating income at each activity level. (15 marks) Sales price RM24 per unit Variable costs: Manufacturing RM12 per unit Administrative RM 3 per unit Selling RM 1 per unit Fixed costs: Manufacturing Administrative RM 60,000 20,000 5 ..5/- b. Vipin Deco manufactures curtains. A certain window requires the following: Direct materials standard Direct manufacturing labour standard 10 square metres at RM5 per metre 5 hours at RM10 During the second quarter, the company made 1,500 curtains and used 14,000 square metres of fabric costing RM68,600. Direct labour totalled 7,600 hours for RM79,800. Required: i. Compute the direct materials price and efficiency variances for the quarter. (9 marks) ii. Compute the direct manufacturing labour rate and efficiency variances for the quarter. (6 marks)