QUESTION2(25MARKS)

1. DMX National Bhd (DMX) produces and assembles "Prestige High Class" car model.Listed below are some of the costs found for the production of the above car model.Youarerequiredtoclassify thefollowingcostsaccording toitsbehavior:

a. ElectricitycostforDMX'sfactory

b. AnnualfireinsuranceforDMX's factory

c. WagespaidtoemployeesinDMX'sproductiondepartment

d. Hireofspecialmachine tomanufacturethecarmodel

e. Maintenancecostsofmachinery usedtoproducethe carmodel

(5marks)

2. Identifyone(1)exampleofcostunitandone(1)exampleofcostcenterforthefollowingbusiness:

a. Sugarrefiningfactory

b. Carmanufacturingcompany

c. Aircrafttransportationcompany

d. Hotelindustry

(4marks)

3. Murni Specialist Medical Centre is a private hospital located in Shah Alam, Selangor.Its prime objective is to provide high quality yet affordable healthcare medical servicestoitspatients.The followinginformationare thecostsincurred for themonth ofNovember2021:

	RM
Staff salaries	88,000
Nurse salary(35nurses)	1,800per nurse
Rentalofbuilding	65,250
Janitor andothersupplies	26,750
Laundrychargesforlinen	32,000
Medicines	64,000
Buildinginsurance	45,000per annum
Waterandelectricity(20%fixed)	180,000per annum
Repair andmaintenance	7,200

Required:

ComputethefollowingcostsforthemonthofNovember2021:

a. Fixed costs

b. Variable costs

(16marks)