Top Bag Sdn Bhd has recently completed its sales forecast of travelling bags for the year ending 31 December 2021. It expects to sell two types of travelling bags Lite-AA and Lite-BB at prices of RM135 and RM145 respectively. Sales demand is expected to be: Lite-AA Lite-BB 10,000 units 6,000 units Both products use the same raw materials and skilled labour but in different quantities per unit: Lite-AA 10 kg Lite-BB 6 kg 8 kg 4 hours Material X Material Y 4 kg Skilled labour 6 hours The prices expected during 2021 for the raw materials are as follows: Material X Material Y RM1.50 per kg RM4.00 per kg The skilled labour rate is expected to be RM6.00 per hour. Stock of raw materials and finished goods on 1 January 2021 are expected to be: Material X Material Y Lite-AA Lite-BB 400 kg 200 kg 600 units 800 units All stocks are to be reduced by 15% from their opening levels by the end of 2021. The company uses absorption costing, and production overhead costs are expected to be: Variable Fixed RM2.00 per skilled labour hour RM20 per unit