Nopal Fabrics Trading received an order from a customer to produce 200 unit of customized corporate attire. The following information is available for JOB X70. Additional information for the cost centers are as follows: Cutting Department Sewing Department Budgeted overhead (RM) 12,500 18,600 Budgeted direct labour hours 6,500 6,200 Budgeted machine hours 2,500 7,400 JOB X70 Direct labour. Cutting department @ RM5.00 per hour Sewing department @ RM3.00 per hour 154 hours 160 hours Machine hours: Cutting department Sewing department Direct materials - Fabric, thread, needles Indirect materials - Button, lace, zip Direct expenses - cost of renting a sewing stitches machine Administration and general expenses Delivery expenses 20 hours 40 hours RM10,800 RM3,000 RM2,200 RM500 RM150 Overhead are absorbeb based on machine hours and direct labour hours for cutting and sewing department respectively. Required: a. Prepare a job cost sheet for JOB X70, showing clearly:- i. Prime cost ii. iii. Production cost Total cost iv. V. Selling price with profit mark up of 100% Selling price per unit (10 marks) b. State TWO (2) characteristics of job costing. (2 marks) a. List TWO (2) features of Job Costing. (2 marks) b. Baby Didi Enterprise is an established company which produces built in kitchen cabinet. During the month of November 2019, the company receives two different orders from customers. The following information is available for the orders. Expenses Order from Puan Zayrah, Puchong Order from Mrs Kok, Bangsar RM RM Direct Materials: Wood 550 Glass Metal Direct Labour. Skilled Semi-Skilled 350 450 870 440 440 230 230 Indirect materials 150 180 Indirect labour 40 50 Power, heat and electricity (80% for factory and 35 85 20% for office) Delivery cost to customer's house 40 40 Installation cost at customer's house 100 100 Clerical expenses 25 25 Other production overhead cost 30 30 Profit calculation 20% on mark 20% on up margin Required: i. Prepare a job sheet for the order from Mrs Kok, Bangsar. Show clearly the prime cost, production cost, total cost and selling price. ii. Prepare a job sheet for the order from Puan Zayrah, Puchong. Show clearly the prime cost, production cost, total cost and selling price. Aman Balee Enterprise received an order from a customer to produce WinWin Jackets. The following information is available for Job No. WJ01. Hire of special sewing machine Direct labour. Sewing department @ RM2.50 per hour Finishing department @ RM2.50 per hour Direct materials: Fabric AA Fabric BB Indirect material Machine hours: Sewing department Finishing department Administration expenses Job No. WJ01 RM800 80 hours 90 hours RM1,000 RM900 RM500 45 hours 50 hours RM2,500 RM800 Selling overhead Additional information for the cost centers are as follows: Budgeted overhead (RM) Budgeted direct labour hours Budgeted machine hours Sewing Department Finishing Department 10,000 12,000 5,000 3,800 2,000 4,000 Overheads are absorbed based on direct labour hours and machine hours for sewing department and finishing department, respectively. Required: a. Calculate the overhead absorption rate (OAR) for each department. b. State TWO (2) characteristics of job costing. (2 marks) (2 marks) C. Prepare a job cost sheet for Job No. WJ01 by showing: i. prime cost ii. iii. production cost total cost iv. selling price with a profit margin of 25% (11 marks) (Total: 15 marks) A. Italian Food Sdn. Bhd. is a company involves in manufacturing Italian frozen food. It hires skilled and unskilled workers. The remuneration for skilled workers (Fatimah, Amrah and Raja) is using time-based scheme while unskilled workers (Rozi and Taufik) are paid using output-based scheme. Unskilled workers are entitled for a guaranteed minimum wage of RM200 per week. Below are the data for the five workers of the company in the first week of December 2020: Employee Hours Units Produced Units Rejected Worked Pizza Lasagna Pizza Lasagna Fatimah 49 100 150 3 2 Amrah 34 200 50 2 5 Raja 42 150 300 1 2 Rozi 40 200 220 2 6 Taufik 40 100 230 1 3 B. Additional information: i. ii. The rate per hour is standardised at RM8 per hour. Overtime is paid twice the normal rate. Normal working hours is 40 hours per week. The rate for a good unit is RM0.70 for pizza and RM0.50 for lasagna. Required: Compute the gross wages paid for each worker for the first week of December 2020. (9 marks) In relation to part (A) above, the management of Italian Food Sdn. Bhd is planning to change the method of remuneration for the unskilled workers. They are considering to use the differential piecework scheme as follows: Pizza Lasagna 0-100 units per week RM0.65 0-100 units per week RM0.40 101-150 units per week RM0.70 101-150 units per week RM0.50 151-200 units per week RM0.75 151 - 200 units per week RM0.55 201 - 250 units per week RM0.80 201 - 250 units per week RM0.60 Required: Compute the gross wages paid for each unskilled worker for the first week of December 2020, if the proposed differential piecework scheme is used. (6 marks) (TOTAL: 15 marks)