QUESTION ONE (25 MARKS) a) Virve Sdn Bhd is a fashion consultant who has just recently started selling clothes via her Instagram account. Previously she only had to deal with a small number of clients and customized her invoices according to the services that she provided for each client. She had rented a small shop where she engaged several seamstresses to sew the clothes she designed and also set up a small office where she does her marketing via all social media. The manufacturing side has a row of sewing machines, design tables, clothes rails and packaging area. The small office has a mini photography studio where she takes pictures of models wearing her clothes and also her computer. Required Identify the management accounting functions that is required for her to run her business successfully and give examples of the type of management accounting decisions that she will need to make for her business (5 marks) b) Builder Bug Berhad allocates overhead at RM9 per direct labor hour. Job A45 required 4 boxes of direct materials at a cost of RM30 per box and took employees 20 hours to complete. Employees earn RM15 per hour Required Compute the total cost of Job A45 (6 marks) c) Halim Moon Sdn Bhd manufactures dining chairs and tables. The following information is available: Dining Chairs 200 250 2,600 Tables 600 470 2,400 Total Cost RM48,000 RM72,000 Machine setups Inspections Labor hours The company is considering switching from one overhead rate based on labor hours to activity-based costing Required Perform the following analyses for these two components of overhead: i. Compute total machine setups and inspection costs assigned to each product, using a single overhead rate. (4 marks) ii. Compute total machine setups and inspection costs assigned to each product, using activity-based costing. (8 marks) ii. What will be the impact of the switch from single rate to activity based costing? (2 marks) Continued