CT MAF251 Q OCT 2019 - Common test question for revision purpose PDF

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UNIVERSITI TEKNOLOGI MARACOMMON TEST 1COURSE : COST AND MANAGEMENT ACCOUNTINGCOURSE CODE : MAFEXAMINATION : OCTOBER 2019TIME : 1 HOUR 30 MINUTESINSTRUCTIONS TO CANDIDATES1. This question paper consists of three (3) questions.2. Answer ALL questions in the Answer Booklet. Start each answer on a new p...

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AC/OCT 2019/MAF251

UNIVERSITI TEKNOLOGI MARA COMMON TEST 1

COURSE

:

COST AND MANAGEMENT ACCOUNTING

COURSE CODE

:

MAF251

EXAMINATION

:

OCTOBER 2019

TIME

:

1 HOUR 30 MINUTES

INSTRUCTIONS TO CANDIDATES

1. This question paper consists of three (3) questions. 2. Answer ALL questions in the Answer Booklet. Start each answer on a new page. 3. Do not bring any material into the examination room unless permission is given by the invigilator.

4. Please check to make sure that this test pack consists of: i) ii)

the Question Paper an Answer Booklet – provided by the Faculty

5. Answer ALL questions in English.

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO This examination paper consists of 4 printed pages © Hak Cipta Universiti Teknologi MARA

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AC/OCT 2019/MAF251

QUESTION 1 a.

Differentiate management accounting and financial accounting based on the following perspectives: i. Main users ii. Scope of report (4 marks)

b.

Briefly explain any FOUR (4) characteristics of good management accounting information. (6 marks) (Total: 10 marks)

QUESTION 2 EasyPrint Company is a leading business offering a variety of printer products. One of the most popular brand and best-selling printer is the ALBERTA. The expected production and sales unit of ALBERTA is 4,200 units per year. The variable overhead is absorbed based on direct labour hour while the fixed overhead is absorbed based on number of units produced. The company is using a standard costing system and has set the following standard for producing one unit of ALBERTA: Standard profit Direct material usage Direct material price Direct labour hour Direct labour rate Variable overheads rate Fixed overheads

RM47 per unit 9 kg RM12 per kg 5 hours RM7 per hour RM6 per hour RM30 per unit

Given below is the actual result for the month of September 2019: Actual production and sales Selling price Direct material Direct labour Variable overheads Fixed overheads

400 units RM260 per unit 3,500 kg at RM11.50 per kg 1,800 hours at RM7.50 per hour RM12,000 RM11,000

Required: a. Prepare a standard cost card for one unit of ALBERTA. Show clearly the standard selling price per unit. (4 marks) b. Calculate the following variances: i. ii. iii.

Material price and usage Labour rate variance and efficiency Variable overhead expenditure and efficiency

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iv. v.

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AC/OCT 2019/MAF251

Fixed overhead expenditure and volume Sales margin price and volume (14 marks)

c. Prepare the profit reconciliation statement for the month of September 2019. (3 marks) d. State any TWO (2) limitations of standard costing. (2 marks) (Total: 23 marks)

QUESTION 3 Koolit Best Sdn Bhd, an establish genuine leather product manufacturer, is currently facing a problem in meeting the customers’ demands. The company faces difficulty in obtaining the main raw material due to the short supply in the market. Currently, the main raw materials can be bought at RM200.00 per square feet and it is estimated to remain constant over the next period. Due to this, the whole demand of their well-known three products Wallet, Handbag and Briefcase, by the famous brand name “Carlo Rimau”, cannot be satisfied. For the coming quarter, the accountant has estimated the sales revenue to be as follows: Wallet Handbag Briefcase

RM 500,000 RM1,000,000 RM1,200,000

Data extracted from the previous records revealed the following information for one unit of each product: Per unit Selling price Direct material cost Direct labour hour Variable indirect material Other variable overhead

Wallet RM200 RM100 2 RM15 RM10

Handbag RM500 RM300 3 RM40 RM15

Briefcase RM800 RM500 5 RM30 RM19

Direct labour is RM15.00 per hour. The fixed production overheads for that period are estimated to be RM100,000 and fixed administration overheads are RM50,000. Feedback from suppliers indicates that the company can only manage to obtain 4,000 square feet of raw materials imported from India and another 3,000 square feet from Africa. Required: a. Determine the shortage of direct material and advice the company on the most profitable mix of products to be produced based on the availability of the material. (show all workings) (12 marks) b. Calculate the net profit that can be derived by the company if the above suggestion is carried out? (3 marks) © Hak Cipta Universiti Teknologi MARA

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AC/OCT 2019/MAF251

c. Provide TWO (2) examples of factor that could be the limiting factor in a production. (2 marks) (Total: 17 marks)

END OF QUESTION PAPER

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