Tenggiri Bhd (TB) began business at the start of the current year and maintains its accounting records on an absorption-cost basis. The following selected information appeared on the company's profit or loss statement and end-of-year statement of financial position:

Profit or Loss Data:	RM
Sales revenues (35,000 units @ RM24)	840,000
Gross Margin	210,000
Total sales and administrative expenses	160,000
Financial Position Data:

Ending finished-goods inventory (12,000 units) 216,0000

There is no beginning finished-goods inventory. TB achieved its planned production level for the year. The company's fixed manufacturing overhead totaled RM188,000, and the firm paid a 10% commission based on gross sales (RM) to its sales force.

Required:

1. Compute the number of units that TB planned to produce during the year.
   2. marks)

(CLO3:PLO2:C2)

2. Compute the fixed manufacturing overhead per unit for TB.
   2. marks)

(CLO3:PLO2:C2)

3. Compute TB's cost of goods sold using absorption costing. (3 marks) (CLO3:PLO2:C2)

4. Compute the variable cost per unit for TB using absorption costing.

(3 marks)

(CLO3:PLO2:C2)

5. Discuss the basic difference between absorption costing and variable costing from a product-costing perspective.
   2. marks)

(CLO3:PLO2:C5)

6. TB starts another product under a new subsidiary, Selar Sdn Bhd (SSB). The following data are related to SSB:

Planned and actual production 200,000 units

Sales at RM48 per unit 170,000 units

Manufacturing costs:

Variable RM18 per unit

Fixed RM840,000

Selling and administrative costs:

Variable RM7 per unit

Fixed RM925,000

Required:

Prepare SSBs variable costing income and absorption costing income.