Answer Scheme FOR Final SKMM 4823 2017 2018 1 PDF

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ANSWER SCHEME FOR SKMM 482320172018-QUESTION 1:a) You are required to determine the price for each new cat cageslaunched by HY SDN BHD with a proper analysis by usingi) Traditional costing method with the absorption of overhead onmachine hours.Direct Cost5 marks for correct direct costDirect Labour ...

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ANSWER SCHEME FOR SKMM 4823 20172018-1 QUESTION 1: a) You are required to determine the price for each new cat cages launched by HY SDN BHD with a proper analysis by using i)

Traditional costing method with the absorption of overhead on machine hours.

Direct Cost 5 marks for correct direct cost Direct Labour = Labour Working Hour x No of Component x Unit Produce x RM10/h Material Cost = Materials cost x No of Component x Unit Produce Simba

Sammy

Pretty

Ginger

Gary

Direct Labour

40,000

50,000

54,000

40,000

35,000

Material Cost

20,000

50,000

36,000

30,000

35,000

Traditional Method

Indirect Cost Total Machine Hours 700 + 1500 + 1500 + 500 +800 = 5000 hours

Total Overhead Cost RM 180,000 OAR = 180,000/5000 = RM 36/machine hour Indirect = OAR x Total Machine Hour

Traditiona l

Simba

Sammy

Pretty

Ginger

Gary

Direct Cost (RM)

60 000

100 000

90 000

70 000

70 000

Total Machine Hours

700

1500

1500

500

800

Indirect Cost (RM)

25 200

54 000

54 000

18 000

28 800

Total Cost (RM)

85 200

154 000

144 000

88 000

98 800

Cost per Unit (RM)

852

616

480

1760

988

Price Per Unit (1.5xcost/ unit) (RM)

1278

924

720

2640

1482

5 marks for correct all price per unit according traditional method (1 mark each)

ii)

Activity-based costing (ABC) method using the given activity driver rate as shown in Table 2

ACTIVITY BASED COSTING



Material Handling = Overhead Cost/ total no of moves = 12 000/20 = RM 600/move



Setup = Overhead Cost/ Total no of setup = 20 000/16 = RM 1250/setup



Machine Maintenance = overhead cost/machine hour = 100 000/5 000 = RM 20/machine hour



Salaries of admin = 48000/480 = RM 100/hour 2 marks total for all above

ABC Indirect Cost

Simba

Sammy

Pretty

Ginger

Gary

3000

1800

2400

3000

1800

2500

5000

5000

2500

5000

14 000

30 000

30 000

10 000

16 000

8000

8000

8000

12 000

12 000

27 500

44 800

45 400

27 500

34 800

Direct Cost (RM)

60 000

100 000

90 000

70 000

70 000

Total Cost

87 500

144 800

135 400

97 500

104 800

Cost Per Product

875

579. 20

451.33

1950

1048

Price Per Product

1312.50

868.80

676.995

2925

1572

Material Handling Setup Machine Maintenanc e Admin Salary Total Indirect Cost

5 marks for correct all price per unit according ABC method (1 mark each) B) Calculate percentage difference between Traditional and ABC method

for each product (ABC- TRADITIONAL) / TRADITIONAL X 100%

ABC

Simba

% DIFF 2.629 % 1 mark - correct formula

Sammy

Pretty

Ginger

Gary

-5.97 %

-5.97 %

10.795 %

6.07 %

1 mark – correct answer for all C) Give advantage and disadvantage of using Activity-based costing (ABC)

method

Advantage

     

Per unit cost is more accurate. More overhead can be link directly to each product. Charged cost to activity that causes the cost to occur. Identify the real characteristics of a cost and help reduce non value added activity. Suitable for making long term decisions because long term variable cost can be analysed more accurately. Can identify processing cost, customer cost and other management cost.

Disadvantage  Need more multi cost pool and cost drivers.  More complicated and may increase management cost.  May not be suitable for small companies or companies that determine its product cost based on market price. Problem of joint cost, selection of cost drivers and non-linear cost drivers. Any above or relevant advantage (0.5 mark) and disadvantage (0.5 mark) for ABC method

QUESTION 2 2.1 TRADE ACCOUNT FOR YEAR ENDING 31 dec 2016 opening stock 5000 sales purchase 100000 105000 minus ending stock 3600 101400 Gross profit 148600 250000

PROFIT AND LOSS FOR YEAR ENDING 31 dec 2016 Rent paid 30400 Gross profit salaris nd wages 40000 Comision paid 3000 Insurance 8000 Utilities 3300

250000

250000

148600

Depreciation (2% x70000) Net profit

1400 62500 148600

Tax (28%xnet profit) Net profit after tax

Dividend Retained profit

148600

17500 Net profit 45000

62500

62500

62500

4500 Net profit after tax 40500 45000

45000 45000

5 marks with concepts and elements Focus on deprecation as well

FIXED ASSET Machineries (Depreciation allocation)

BALANCE SHEET AT 31 DEC 2016 EQUITY 70000 capital 4200

Retained profit 65800 (Withdrawals)

100000 40500 140500 20000 120500

LONG TERM LIABILITIES

CURRENT ASSET cash Debtors

4000 10000

Bank Ending stock

50200 3600

SHORT TERM LIABILITIES 67800 overdraft creditors

9100 4000 13100

133600

5 marks . wrong 2 answer or concept, -1.

133600

QUESTION 2b) ABSORPTION Sales Total cost Profit

K 96 98 -2

L 250 114 136

M 210 102 108

ANSWER: ( FIXED ASSET SHARING) K L Sales 96 250 Variable cost 39.2 45.6 Contribution 56.8 204.4 Fixed cost Profit (2 marks for VC, 2 marks for FC)

N 70 200 -130

M 210 40.8 169.2

N 70 80 -10

JUMLAH 626 514 112

626 205.6 420.4 308.4 112

Thus if N discontinued: Contribution L : 204.4 M: 169.2 K: 56.8 N: 0 RM430.4 - RM308.4 RM122 (2 marks) b) If only produce L and M (compulsory prod) :

Sales VC Contribution FC Profit

L 250 45.6 204. 4

M 210 40.8 169.2

460 86.4 373.6 308.4 65.2

(2 marks) Factor accepting and rejecting any order, 2 factors: - there is no other way to use the extra unused capacity -the order may cause a reduction in market demand - factory capacity may not enough to increase production to sell at normal price should the opportunity rise - is it true that FC will not increase if the offer is accepted. (2 marks)

QUESTION 3

3.1) Ahmad has been transferred to a new department in order to fulfill the requirement for his promotion. There are four workers has been assigned under the supervision of Ahmad. As a new supervisor, Ahmad never knew these workers before. Based on Ahmad's early observations, each employee has their own character. Ali is an employee who likes to learn about new things in his work. However, he was quite a slow learner. Yet, if there is any instruction given to him, Ali tried his best to perform his job. The second employee is Abdul. He is an efficient and skilled worker. Abdul only needs a short time accomplished the task. However, Abdul has a negative behavior. He will only do the job as he wishes. If he does not feel like it, Abdul will not do the job even though he is very proficient in that particular job. The third and fourth workers have very different personalities and knowledge. Faizal is a skilled, competent and highly skilled worker in his field of work. Not only that, he also has a high morale and is able to give commitment whenever given any task. On the other hand, the fourth worker, Syahir, will always complain, avoiding and try to push the assignment given to him to others. Not only that, it may be because of too often pushing the job, there is none of the scope of his works that he is really proficient. As a new supervisor, Ahmad must ensure that all the work given to his group is completed perfectly. Moreover, Ahmad's group has been given a relatively important task for the company. In order to ensure that his team achieves the goal, Ahmad emphatically employs all his employees. He defines the roles for of each of them, and tells them what to do or how and when to perform their duties. Unfortunately, unlike his expectations, this kind of leadership he demonstrated was only able to improve Syahir's performance, but not the other three.

Based on the given case study: a) Using the appropriate leadership theory, explain why Ahmad's leadership only Syahir's performance, but not to the other three employees.

enhances

(4 marks) -

Based on Hersey and Blanchard’s Situational Leadership Theory (SLT) (1 marks)

-

successful leadership is achieved by selecting the right leadership style which is contingent on the level of the followers’ readiness.

(0.5 marks)

-

-

In this case study, these four workers have different readiness: o

Syahir is R1: unable and unwilling

o

Ali is R2: unable but willing

o

Abdul is R3: able but unwilling

o

Faizal is R4: able and willing

o

Ali is

Ahmad’s leadership is telling style, only suitable for Syahir

(2 marks)

(0.5 marks)

b) Ahmad has asked your opinion regarding this issue. As a manager, recommend to Ahmad how to improve this situation based on suitable leadership theory (ies). (6 marks) -

-

Based on Hersey and Blanchard’s Situational Leadership Theory (SLT) o

Syahir is R1: unable and unwilling – maintain the telling style

o

Ali is R2: unable but willing – use selling style

o

Abdul is R3: able but unwilling- use participating style

o

Faizal is R4: able and willing – use delegating style

Briefly explain about each style (1.5 marks for each point and explanation)

3.2) You have been appointed as one of the interviewer for supervisory job application in a manufacturing company. Aside from supervise people with different capability and attitude as well as other essential task, the job as a supervisor might involve certain situation such as working until late night, solve any crisis at work and become a middle man between top management and operators. There are many types of selection devices including realistic job preview and performance simulation. Recommend what should be explained or asked to the interviewee if the interview consider: a) Realistic job preview -

Interviewer need to explain to the interviewee that the job might involve working until late night, solve any crisis at work and become a middle man between top management and operators. If the interviewee thinks that he/she is not capable to do that, he/she will not accept the job. (2)

b) Performance simulation

(4 marks) - interviwer provide some case to the interviewee and ask him/her how to solve the problem (2)

3.3) Megah Sdn Bhd wants to improve the job satisfaction among its workers. Based on the survey done, the company has identified several factors that make the workers really dissatisfied including tight supervision, low salary and bad working condition such as suitable tools are not provided as well as crowded working place. The company has taken some actions including increasing the workers’ salary and improving their working condition. Unexpectedly, although the complaints among workers has been decreased, it seems that the job satisfaction among workers still the same as before. Based on your understanding on theories of motivation, evaluate why the job satisfaction not been improved increase. Suggest what the company can do to improve this condition. (6 marks) 

Based on Herzberg’s Motivation-Hygiene Theory (1)



Job satisfaction and job dissatisfaction are created by different factors. (1)



What the company has done is improve the job dissatisfaction. Nothing has been done to increase the job satisfaction. (2)



The company need to recognize the effort of the workers, give rewards or bonus and provide the job advancement opportunities to increase the job satisfaction. (2)

QUESTION 4 (20 marks) Read an article in Figure 4.1 and answer the Question 4.1.

4.1) Based on the given case study: a) Evaluate coffee industry attractiveness and profitability based on given case study from Kopiko perspective using five forces model. Support your model with own opinion. (10 marks) Threat of New Entrants: 1) Likely because there are many coffee drinker in Malaysia. Besides, there is no very big player in this industry based on sentence “…..to 15% by end 2014 …5% currently”. Coffee also can be made in many different variations. Therefore, there is a big opportunity for new entrants.

Threat of Substitutes: 1) Unlikely because Kopiko is a well-known brand and has presence in more than 80 centuries . - coffee specialist with involves end to end process

- competitive advantage – Low Acid coffee

Bargaining Power of Buyers 1) High in terms of number of coffee manufacturer in Malaysia. But low in terms of specialize coffee such as LA coffee.

Bargaining Power of Suppliers: 1) Low because Mayora produce the coffee itself: own coffee plantation etc

Current Rivalry: 1) Currently, there are many rivalry in industry

How it will affect Kopiko: Kopiko should focus more on LA coffee because of its competitive advantage. Do marketing on its advantage aside from tell others about specialty of Mayora such as own coffee plantation etc.

Remarks Student must provide at least one correct answer (with suitable explanation) for at least foru forces to get 8 marks and another answer (with suitable explanation) on how it will affect WASSB for additional two (2) marks. Marks were also given for answer that opposite than the marking scheme as long as there were suitable explanation.

b) Based on your five forces model, suggest and elaborate which types of competitive advantage should be implemented for Kopiko brand. (4 marks)

-

Differentiation especially on LA coffee because of its uniqueness. (2) Any relevent explanation here. (2)

-

Focus strategy – using LA coffee and focus on people who like coffee but does not have durability to drink coffee because of its high acid level (2) Any relevent explanation here. (2)

-

4.2) Bina Sdn Bhd which is a manufacturing company intends to assemble 10 000 same type of electronic products a day for 20 days. In order to make the workers to get used and improve their productivity, each worker has been assigned to a very specific task and they are required to do the same task for the whole 20 days. In the beginning, the productivity has been improved significantly. Yet, only several days after that, the productivity has been considerably declined. Based on your understanding, explain the result based on a suitable theory. Provide the necessary assumptions to support your points of view. As a manager, suggest what you can do to improve this condition. Elaborate your answer. (6 marks)

-overspecialization – cause of boredom, fatigue and stress (2) - bigger scope, job enrichment and enlargement – explanation how to use enrichment and enlargement job (4)

QUESTION 5

Figure 5.1 shows an accident in an engine block assembly company. An engine block is transported on a conveyor with turntable at two levels. The block is held by fixtures on the upper level, and the fixtures are returned empty on the lower. The conveyor stops suddenly. An assembler sees that one of the return fixtures has become stuck in the turntable. When he stretches out his hand and pulls on the engine block, a sensor is activated. The turntable starts to turn and traps his hand.

Figure 5.1: An incident in an engine block assembly company

a) Based on the Figure 5.1, identify all domino factors that may lead to the injuries. Use any theory that you learn to support your explanation. Analyze the causations by giving two examples for each element. (10 marks)

Heinrich approach:

Ancestry and social environment Fault of person Unsafe act and unsafe condition

Accident Injuies

Education background , family background Untrained people, unawareness, blame people Do maintenance without shut off the power. No SOP Any right answer The turntable is moving , Then trap the worker’s hand Hand Cut, wound, stuck, broken……

In other case, this answer is acceptable (Bird and Loftus approach):

Lack of control (management)

lack of SOP, no enforcement policy, decision making

Basic causes

Lack of knowledge, skill, motivation, Inadequate tools, maintenance All unsafe acts and unsafe conditions The turntable is moving , Then trap the worker’s hand Hand Cut, wound, stuck, broken……

Immediate causes Incident Injuries

b) In your opinion, how to limit the causation in order to avoid or reduce the loss and injuries? (2 marks)

Pull out/ throw away one of the domino factors, this will avoid the other domino factor to happen.

c) By referring to OSHA 1994, outline four (4) relevant sections mentioned in the Act, related to the person responsible or the action. Detail it with two examples of actions or activities for each section.

(8 marks) Section 15

Section 24 Section 29 Section 30

Section 31

Responsibility of employers to provide a safe workstation and do maintenance if required. Provide an OSH policy to show commitment Enforce all the safety procedure Responsibility of employees to follow all the instructions, follow SOP, use appropriate PPE.. A company should have safety committee (for the co with more than 40 workers) to discuss, meeting, enforce, advise… A company should have SHO (for more than 100 workers or 500 workers depend on the types of company) to advise the employers, give suggestions, ask budget for maintenance of turntable, Employers to report all the accident, incident, near miss.. to DOSH

QUESTION 6 (20 marks) Picture in Figure 6.1 shows a process of welding of frame structure by two workers.

Figure 6.1: Welding activities of bus frame structure by two workers

a) By using a suitable analysis tool to identify, assess and suggest the control measures, analyses the workers activities with at least five hazards at workplace. Then fill in all the contents needed. (15 marks)

No.

Activity

Hazard

Exis...