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help me QUESTION FOUR (25 MARKS) a) Lombard Berhad has two investment centers and has developed the following information: RM120,000 Departmental controllable margin Average operating
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QUESTION FOUR (25 MARKS) a) Lombard Berhad has two investment centers and has developed the following information: RM120,000 Departmental controllable margin Average operating assets Sales ROI RM400,000 250,000 12% 800,000 10% Required (2 marks) (2 marks) ii. Compute Department B's new ROl if Department B is able to reduce its operatin i. Compute Department A's average operating assets ii. Compute Department B's controllable margin. assets by RM100,000 (3 marks) iv. Compute Department A's ROI if DepartmentA margin by RM60,000 as a result of reducing cost. (3 marks) b) Relawan Berhad. manufactures one product called tybos. The company uses a standard cos system and sells each tybo for RM8. At the start of monthly production, Relawan estimated that 9,500 tybos would be produced in March. Relawan has established the following material and labor standards to produce one tybo: Direct materials Direct labor 2.5 pounds 0.6 hours RM3 per pound RM10 per hour During March 2016, the following activities were recorded by the company relating to the production of tybos: The company produced 9,000 units during the month. 2. 1. A total of 24,000 pounds of materials were purchased at a cost of RM66,000. 3. A total of 24,000 pounds of materials were used in production. 4. 5,000 hours of labor were incurred during the month at a total wage cost of RM55,000. Required Calculate the following variances for March for Relawan Berhad a) Materials price variance b) Materials quantity variance (c) Labor price variance (d) Labor quantity variance (3.5 marks) (4 marks) (3.5 marks) (4 marks) End of paperStep by Step Solution
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