QUESTION 5 Fella Craft Sdn Bhd produces two home decoration products for domestic market namely NEAT and TIDY. The production of the products consumes two types of materials (Material X and Material Y) and worked by two types of labour (skilled labour and semi-skilled labour). The following information is the estimate productions and sales of the products for the month of December 2010. NEAT TIDY Total sales at standard price RM1,368,000 RM1,536,000 Standard selling price per unit RM570 RM480 Production cost per unit RM380 RM320 Stock at production cost (1 December 2010) RM152,000 RM256,000 Stock at production cost (31 December 2010) RM190,000 RM352,000 Material X used for each unit 2 meters 3 meters Material Y used for each unit 1 meter 2 meters Skilled labour hours worked for each unit 10 hours 7 hours Semi-skilled labour hours worked for each unit 6 hours 5 hours Additional information: 1 . Purchase cost of Material X and Material Y is RM20 per meter and RM30 per meter respectively. 2. Skilled labour will be paid at RM5 per hour, while semi-skilled labour labour will be paid at RM3 per hour. 3. Stocks of materials at purchase cost are as follows: Material X Material Y Stock at 1 December 2010 RM20,000 RM60,000 Stock at 31 December 2010 RM30,000 RM90,000