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Ramadani Sdn. Bhd. (RSB) is producing two products, R and S. Below is the extracted data relating to their company operation: Particulars Selling price (RM/unit)

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Ramadani Sdn. Bhd. (RSB) is producing two products, R and S. Below is the extracted data relating to their company operation: Particulars Selling price (RM/unit) Production and sales (unit) Raw material costs (RM/unit) Direct labour costs (RM/unit) Direct labour hours/unit Machine hours/unit Number of production runs Number of deliveries Number of receipts Number of production orders Overhead costs incurred are as follows: Particulars Setups Machines Receiving Packing Engineering Products R S 160 130 40,000 16.000 40 22 24 12 4 2 2 4 20 40 10 40 140 880 35 65 RM 60.000 1.520.000 870.000 500.000 746,000 REQUIRED: (a) Compute the product cost based on a single plant-wide overhead rate. (Use direct labour hours as the basis). (6 Marks) (b) As for each overhead cost: (1) Match the overhead costs with appropriate cost drivers. (2.5 Marks) (ii) Compute the overhead rate for each cost driver. (2.5 Marks) (e) Calculate product costs using activity-based costing (ABC). (14 Marks) (d) Compare the product costs calculated using both methods. Discuss whether the company has set the price appropriately. (2 Marks)

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