management accounting

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Question 1 (5 Marks) Good Looking Sdn Bhd has an average annual demand for blue, medium polo shirts of 25,000 units. The cost of placing an order is RM80.00 and the cost of carrying one unit in inventory for one year is RM25.00. Maximum daily demand is expected to be at 126 units while minimum daily demand is estimated at 80 units. The maximum and minimum lead time is 15 and 7 days, respectively. Required: a. Use the economic-order-quantity model to determine the optimal order size. [2 marks] b. Determine the reorder level. [1 mark] c. Determine the maximum level required to prevent stock-outs. [2 marks] Question 2 (10 Marks) In Andalusia Ltd, wages are paid on a weekly basis (40 hours per week) at a guaranteed hourly rate of RM2.80. It is estimated that the time required to manufacture a particular product was 12 minutes. However, the time allowed of 25% is to be added (for normal idle time, setting up time, etc.). During the first week of June 2020, Roslan produced 250 units of the product. Required: Compute Roslan's wages for the particular week using the following methods of wage payment: a. time rate. [2 marks] b. piece rate with a guaranteed weekly wage. [3 marks] C. Halsey's premium bonus scheme. (5 marks] The following information relates to Oppa Trading for the year ended 31 December 2019: Cost Total Fabrication Finishing Canteen Maintenance RM RM RM RM RM Indirect labour 340,000 120,000 140,000 30,000 50,000 Indirect material 82,000 24,000 32,000 20,000 6,000 Heating & lighting 24,000 Rent and rates 36,000 Depreciation 60,000 Factory administration 48,000 and personnel Power 40,000 630,000 Finishing RM 24.000 Canteen RM 6,000 Maintenance RM 10,000 The following information is also available: Total Fabrication RM RM Floor space (sa 60,000 20,000 metres) Book value of 600,000 300,000 machinery (RM) Number of employees 160 80 Kilowatt hours 20,000 9,000 Direct materials (RM) 100,000 Direct labour (RM) 50,000 240,000 20,000 40,000 10 10 1.000 2,000 60 8,000 50.000 42,000 Direct labour (RM) Maintenance hours Labour hours Machine hours 50,000 8,000 12,640 42,000 6,000 8,400 15,700 The production process requires a range of materials and involves workers with differing hourly wage rates. Required: Prepare a production overheads analysis and apportionment sheet, showing clearly the bases of apportionment used. END OF QUESTIONS