Instruction: Answer ALL Questions.
Question
1
State three
(3) differences between management accounting and financial accounting.
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Item
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Management
Accounting
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Financial
Accounting
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(3
Marks)
Question
2
(Question 2 consists seven parts. Circle the
correct answer).
Use the
following information for Question 2 (part I until IV)
The information below taken from Freeze
Company for the current year:
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Standard Cost for One unit
Variable overhead rate
Fixed overhead rate
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Two
hours @ RM3 per machine hour
Two
hour @ RM4 per machine hour
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Budget Data
Budgeted output units
Budgeted machine hours
Budgeted variable manufacturing overhead
Budgeted fixed manufacturing overhead
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30,000
units
60,000
hours
RM180,000
RM240,000
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Actual Data
Actual output units produced
Actual machine hours
Actual variable manufacturing overhead
Actual fixed manufacturing
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33,000 units
63,000 hours
RM188,000
RM231,000
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Part I
What is the variable manufacturing overhead
flexible budget variance?
A. RM10,000 F
B. RM8,000 U
C. RM9,000 U
D. RM8,000 F
Part II
What is the variable manufacturing overhead
spending variance?
A. RM8,000 U
B. RM1,000 F
C. RM7,000 U
D. RM1,000 U
Part
III
What is the fixed manufacturing overhead
spending variance?
A. RM33,000 F
B. RM9,000 F
C. RM9,000 U
D. RM33,000 U
Part IV
What is the fixed manufacturing overhead
production volume variance?
A. RM12,000 F
B. RM24,000 F
C. RM18,000 F
D. RM24,000 U
Use the
following information for Question 2 (part V until VII)
The Glassware Company sells two types of
insulated window panes to window installer: Tinted and Low Tint. The company had the following budgeted and
actual data for the month of April:
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Budgeted
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Actual
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Tinted
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Low Tint
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Tinted
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Low Tint
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Selling price per pane
Variable cost per pane
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RM25
RM15
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RM20
RM10
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RM26
RM14
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RM19
RM10
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Contribution margin per pane
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RM10
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RM10
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RM12
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RM9
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Unit sales
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2,400 units
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2,000 units
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2,300 unit
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2,100 units
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Fixed costs
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RM8,000
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RM6,000
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Part V
What is the total sales volume variance based
on contribution margin?
A. RM300 U
B. RM8,300 U
C. RM0
D. RM8,000 U
Part VI
What is the total sales mix variance based on
contribution margin?
A. RM301 U
B. RM0
C. RM602 U
D. RM100 U
Part
VII
What is the total sales quantity variance
based on contribution margin?
A. RM301 U
B. RM301 F
C. RM602 F
D. RM0
(7
Marks)
Question
3
EMS manufactures lawn mowers for sale to
large retailers. It presently
manufactures the carburetors for its lawn mowers in the company’s main
plaint. EMS estimates that it needs 26,000
carburetors per year. A company has
offered to sell EMS the part for RM65 each.
If EMS buys the part from outside the company instead of making it, it
will not use the excess capacity for another manufacturing activity. Since other manufacturing activities are in
the plant, EMS estimates that 30% of the fixed overhead can be avoided.
The following list shows the cost if EMS
manufactures the carburetors:
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Raw material (per unit)………………….
Direct labor (per unit)……………………
Total fixed overhead…………………….
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RM
30
20
500,000
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Required to help EMS whether to make or buy
the carburetors. Show(s) all the calculation details.
(11
Marks)
Question
4
The following information provided from AHH
Company:
Financial Reports and
Budgets for
levels of activity 74,000 units (Actual) and 80,000 units (Budget)
levels of activity 74,000 units (Actual) and 80,000 units (Budget)
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Actual
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Budget
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Production
(unit)
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74,000 units
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80,000 units
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Variable costs:
Direct material
Direct labor
Overhead cost
Administration cost
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70,000
50,000
38,200
42,400
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69,800
50,600
38,000
42,000
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Total variable costs
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200,600
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200,400
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Fixed costs:
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40,000
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40,000
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Total
costs
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240,600
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240,400
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Required:
a)
Prepare
a flexible budget for the activities 74,000 and 86,000 units.
b)
Prepare
a performance report for the activity 74,000 units.
(22
Marks)
