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This is the Subject of Cost Accounting Careless Whisper Sdn Bhd manufacturers three automobile security devices. The budgeted unit cost and resources requirement sof each
This is the Subject of Cost Accounting Careless Whisper Sdn Bhd manufacturers three automobile security devices. The budgeted unit cost and resources requirement sof each if these devices are tabled below. Products and cost per unit Sting Hailer Vibra RM RM RM Direct Material (RM2 per kg) 4.00 15.00 10.00 Direct Labour 4.00 10.00 8.00 Variable Overhead 4.00 7.50 6.00 Fixed Overhead 4.50 11.25 9.00 4,000 2,000 1,500 Budgeted volume (units) per annum Selling price 20.00 50.00 40.00 Additional Information: Direct Labour rate is RM 4.00 per hour. Direct material price is RM 2.00 per kg 4 In the following month a shortage of direct material is expected and a limit of 20,000 kg are available Required: Required: a. Using the information given, calculate the optimum production required to provide Carless Whisper Sdn Bhd with the maximum profit achievable from the limited direct material available. (16 marks) b. Calculate the total profit that can be achieved from the production calculated in part (a). (5 marks) Provide TWO (2) possible ways of overcoming shortage of direct material and direct labour hours (4 marks)
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