Name: Subject Code Title:

Student ID: Programme/Year of Study: Tutorial Group:

KUALA LUMPUR
ANSWER SHEETS

Name : dwfwew
Student ID No : ###
Subject Code & Title : AMBC3064 COST AND MANAGEMENT ACCOUNTING II
Programme/Year of Study : DAC 2 Sem 3

INSTRUCTIONS TO CANDIDATES

1. You are required to download this Microsoft Excel Answer Booklet and use it on your
desktop.
2. You are required to type your answers for ALL the questions using the font type of Times
New Roman and the font size of 12.
3. You will need to open your Google Drive to do some settings. Click on the ‘Settings’ on
Google Drive, and select the first option ‘Settings’.  
4. In the ‘Settings’ window, under the ‘General’ section, uncheck/untick the box for ‘Convert
uploads’. This is to prevent your Microsoft Excel Answer Booklet from being automatically
converted into a Google spreadsheet.
5. Your Microsoft Excel Answer Booklet should be named using your full name, followed by the
subject code. [ie. Ng Kean Wai (ABMC3064)
6. Once you have completed typing your answers, upload your Microsoft Excel Answer Booklet
into your Google Form
7. Click on the Google Form attached in the Assignment section of the Google Classroom to
register yourself.
8. At the ‘Answer’ section, click ‘Add File’ to upload your Microsoft Excel Answer Booklet.
Then click ‘Submit’.
9. Submission into Google Form latest by 4 MAR 2021 7.45 PM sharp. 
10. Any late submission will subject to penalty as described in test instruction.

FOR EXAMINER'S USE ONLY

QUESTION
MARKS
NUMBER
INTERNAL EXTERNAL
QUESTION 1 0
QUESTION 2 0
QUESTION 3 0
QUESTION 4 0

TOTAL 0
Name: dwfwew
Student ID No: 3E+021
Subject Code & Title: AMBC3064 COST AND MANAGEMENT ACCOUNTING II
Programme/Year of Study: DAC 2 Sem 3

Type answers on this side of the page only

Question 1

a) Overhead absorption rate

= Total production overhead/Total Machine hours
= (46,225+36,500+30,400+45,000)/(0.5*2,500+1*3,000+1.5*1000)
= RM 27.5 per machine hour

X Y Z
RM RM RM
Direct materials 38.00 44.00 70.00
Direct labours 32.00 66.00 58.00
Production overhead (27.5*0.5; 1; 1.5) 13.75 27.50 41.25
Unit cost 83.75 137.50 169.25

b) Cost drivers X Y Z Total

RM RM RM RM
Number of orders 250 300 100 650
Production runs 50 60 20 130
Requisition raised 100 90 80 270
General facility 1250 3000 1500 5750

Overhead ABC rate (overhead/no of cost

Activity Number of cost drivers
(RM) drivers)
Production setup 46,225 130 Production runs 355.58 / Production runs
Stores receiving 36,500 270 Requisition raised 135.19 / Requisition raised
Material handling 30,400 650 Orders 46.77 / Orders
General facility 45,000 5,750 Machine hour 7.83 / Machine hour
Total 158,125

X Y Z
RM RM RM
Production setup 17,779 21,335 7,112
Stores receiving 13,519 12,167 10,815
Material handling 11,692.31 14,030.77 4,676.92
General facility 9,783 23,478 11,739
Total overhead 52,772 71,010 34,342
/ total units 2,500 3,000 1,000
Overhead/u 21.11 23.67 34.34
+ Direct Materials 38.00 44.00 70.00
+ Direct labours 32.00 66.00 58.00
Unit cost 91.11 133.67 162.34

c) X Y Z
RM RM RM
Unit cost under absorption costing (a) 83.75 137.50 169.25
Unit cost under abc (b) 91.11 133.67 162.34
Differences - 7.36 3.83 6.91
The overhead in product X was under stated under absorption costing method. This understated
amount of overhead is shifted by product Y and Z. Because product Y and Z are produced in large
quantity, the difference in Y and Z are not obviously compared. Management might make wrong
decision based on absorption costing.
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marker’s use only
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Name: dwfwew
Student ID No: 3E+021
Subject Code & Title: AMBC3064 COST AND MANAGEMENT ACCOUNTING II
Programme/Year of StudyDAC 2 Sem 3

Type answers on this side of the page only

Question 2

a) No Cost items
1 The wood material was bought some years ago. It is sunk cost. It is irrelevant cost.
Loss of opportunity to earn on disposal of woods is relevant cost.
2 Metal were bought and currently used continuous in company. It is relevant cost.
3 There is a incremental cost as for further supplies. It is relevant cost.
4 The assembly labour is insufficient. It is irrelevant cost.
5 Finishing labour work overtime. It is relevant cost.
6 Overheads absorbed, there is no incremental costs. It is irrelevant cost.
Total relevant costs
Contract price (RM6*6000 units)
Contribution

Comment: Sejati Sdn Bhd is advised to accept the contract as it can generate a contribution of RM19,300.

b) The reason relevant costing is important because it can provide relevant information that is useful to managers
to make accurate decision. Besides, the second reason is because generating information is a costly process and
relevant costing help to highlight the information that is important and relevant to the managers. Moreover, the third
reason is supplying information that is irrelevant will waste the managerial resources and relevant costing can help to
minimise such resources wastage. The fourth reason is too much information may decrease the effectiveness of decision
making because they need to evaluate many information.
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RM
-
2,400 (2000*1.2)
1,500 (100*15)
200
-
12,600 (1200*7*1.5)
-
16,700
36,000
19,300
0
Name: dwfwew
Student ID No: 3E+021
Subject Code & Title: AMBC3064 COST AND MANAGEMENT ACCOUNTING II
Programme/Year of Study: DAC 2 Sem 3

Type answers on this side of the page only

Question 3

a) Calculation of shortfalls
X Y Z TOTAL
Labour hour Labour hour Labour hour Labour hour
Sales demand 600 700 700
x LH/u 15.00 10.00 10.00
Total MH required 9,000 7,000 7,000 23,000
Total LH available (20,000)
Shortfalls 3,000

b) Calculation of contribution per limiting factor

X Y Z
RM RM RM
Selling price 1,000 700 550
(-) Direct materials (150) (120) (80)
(-) Direct labour (375) (250) (250)
(-) Variable OH (100) (120) (140)
Contribution/u 375 210 80
/ LH per unit 15.00 10.00 10.00
Contribution/MH 25.00 21.00 8.00
Ranking 1st 2nd 3rd

Optimal Production plan

X Y Z TOTAL
Labour hour Labour hour Labour hour Labour hour
Optimal Production (u) 600 700 400
x LH/u 15.00 10.00 10.00
Total LH required 9,000 7,000 4,000 20,000
Total MH available (20,000)
Shortfalls -

c) Calculation of maximum Profit

X Y Z Total
RM RM RM RM
Contribution / unit 375 210 80 665
x Optimal production (u) 600 700 400 1,700
Total contribution 225,000 147,000 32,000 404,000
- Fixed cost - 200,000
Net profit 204,000
This column is for
marker’s use only
0
Name: dwfwew
Student ID No: 3E+021
Subject Code & Title: AMBC3064 COST AND MANAGEMENT ACCOUNTING II
Programme/Year of Study: DAC 2 Sem 3

Type answers on this side of the page only

Question 4

(A)
a) The advise is the Coco Sdn Bhd should accept the special order because it has 20% spare
capacity. It can fully utilize the capacity by accepting the offer if it provide contribution.

b) Without special order: RM

Sales (170000*12.50) 2,125,000
Less: Costs (170000*9.50) 1,615,000
Contribution 510,000

With special order: RM

Sales (170000*12.50) 2,125,000
(42000*7.8) 327,600
2,452,600
Less: Costs (212000*8) 1,696,000
Contribution 756,600

Comment: Coco Sdn Bhd is advised to accept the special order because it can get a profit
by RM246,600 (756,000-510,000)

B) Relevant Costing per unit G (RM) GG (RM)

Purchase price 50 60
Cost of making:
Variable production cost 50 60
Avoidable fixed production cost 8 12
58 72

Incremantal cost of buying/(making) -8 -12

Decision Buy Make Total

Cost saved if buy 8 12

Demands 6,000 8,000
Cost saved if buy 48,000 96,000 144,000

Advise: The company is advised to buy 6000 units of G and 8000 units of GG as it can enable the company
to save a total cost of RM144000, further maximising the profit. The company is also advised to utilized its
available 45000 machine hours on other profitable activities to maximise profit.
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