Question 1 Ikhlas Bhd. a manufacturer of thermal flask, has decided to implement budgetary control for the fir time. The company currently uses a marginal costing system. The following details have be compiled: Direct labour hourly rate is expected to be RM3.50. 2. The production and sales units are 12,000 and labour hours of 24,500 hours represent 100% activity level. 3. The budgeted selling price per unit is RM80 and there were no opening and closing inventorie 4. Rental and insurance costs per unit at 100% activity level is RM0.95 and RM0.35 respectively 5. The direct material cost per unit is RM5.25 while indirect labour per unit is RMO.15. 6. The expected production overheads are related to direct labour hours in the same manner as th last three years as below: Year Direct labour hours Total production overheads (RM) 2017 21,000 65,500 2018 79,120 210,800 2019 35,200 140,000