CONFIDENTIAL AC/DEC 2022/MAF251
UNIVERSITI TEKNOLOGI MARA
COMMON TEST
COURSE : COST AND MANAGEMENT ACCOUNTING 2
COURSE CODE : MAF251
EXAMINATION : DECEMBER 2022
TIME : 1 HOUR 15 MINUTES
INSTRUCTIONS TO CANDIDATES
1. This question paper consists of TWO (2) 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 examination pack consists of:
i) the Question Paper
5. Answer ALL questions in English.
DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO
This examination paper consists of 3 printed pages
© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL
CONFIDENTIAL AC/NOV 2022/MAF251
QUESTION 1
a. Ali and Ahmad are studying at a private college in Bandar Baru Bangi. Currently, they
are taking Management Accounting course and required by their lecturer to submit an
assignment on the importance of Management Accounting in decision making. They
have approached you to assist them to complete the assignment.
i. Briefly explain any TWO (2) important of Management Accounting to an
organization.
(4 marks)
ii. Describe any TWO (2) limitations of Management Accounting.
(2 marks)
b. Miss Haida, a Financial Accountant claimed that her work in record keeping,
performance evaluation, stewardship function and decision making has nothing similar
with your work as Management Accountant.
Do you agree with the statement made by Miss Haida? Justify TWO (2) reasons to
support your answer.
(4 marks)
(Total: 10 marks)
QUESTION 2
YOU & I Bhd manufactures a skin care product which is labelled as Beauty in Me. The
following shows the relevant information of the product for the month of October 2022:
Quantity RM
Sales and production (units) Budgeted 15,000 35 per unit
Actual 13,200 36.90 per unit
Direct material (litres) Actual 4,850 17.60 per litre
Direct labour (hours) Actual 56,000 3.00 per hour
Variable overhead Actual 147,000
Fixed overhead Actual 42,600
The company also provides additional information regarding the standard costs related to
the product:
Direct material 4,500 litres at RM18 per litre
Direct labour 60,000 hours at RM3.50 per hour
Variable overhead RM2.50 per hour
Fixed overhead RM0.80 per hour
It is the company policy that all overheads are absorbed based on direct labour hour.
2
CONFIDENTIAL AC/NOV 2022/MAF251
Required:
a. Prepare a standard cost card for one unit of product Beauty in Me. Show clearly the
standard profit and standard selling price per unit.
(4 marks)
b. Calculate the following variances:
i. Direct material price and usage
ii. Direct labour rate and efficiency
iii. Variable overhead expenditure and efficiency
iv. Fixed overhead expenditure and volume
v. Sales margin price and volume
(15 marks)
c. Prepare the profit reconciliation statement for the month of October 2022.
(3 marks)
d. Briefly explain FOUR (4) limitation of standard costing system.
(8 marks)
(Total: 30 marks)
END OF QUESTION PAPER
