Question 1

Bulan Manufacturing Berhad is a company making three products, X, Y and Z.

	x	y	z
Productions (Units produced)	4,000	10,000	2,000
Direct Material (RM per unit)	rm 30	rm 45	rm25
Direct Labor (RM per unit)	rm 25	rm30	rm25
Direct Labor Hour per unit	hr3	hr4	hr2

The budgeted overhead of the company is RM1,080,000 and the company still usining traditional costing and absorbs OH based on Direct Labur Hour (DLH). The management interested in shifting to Activity Based Costing system and found there are THREE major activities involved to produce the products. The OH costs assigned to each activity cost pool as follows:

COST POOL	AMOUNT
Machine Costs	400,000
Set-up Cost	560,000
INSPECTION COST	120,000
TOTAL COST	1,080,000

ADDITIONAL INFORMATION

Cost Driver/PRODUCT	X	Y	Z	TOTAL
Machine hours	18,000	22,000	5,000	45,000
Number of Production	3,000	2,000	1,000	6,000
Number of Purchase order	1,000	1,000	1,000	3,000
Number of inspections	2,000	8,000	1,000	11,000

1ACompute the unit production cost of X, Y and Z by using traditional basis.

1BCompute the unit production cost of X,Y and Z by using ABC costing.

1C.Discuss three (3) the limitations of traditional overhead costing as compared to Activity Based Costing.

its urgent

answer should come in 1A ANSWER

1B ANSWER

1C ANSWER