496 000 496 000 daily travel allowance w2 316 800 325

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496 000 496 000 - Daily travel allowance (W2) 316 800 325 200 8 400 (A) Sales office expenses (W3) 640 000 600 800 39 200 (F) Shipping expenses (W4) 1 055 000 1 023 000 32 000 (F) Total expenses 6 288 200 6 245 800 42 400 (F) ( W1 ) RM 216 000 / 90people = RM 2 400 per month RM 2 400 x 96people = RM 230 400 Commissions 4% x RM 12 400 000 = RM 496 000 ( W2 ) 90 worker @ 15 days per person = RM 297 000 / 15 days = RM 19 800 per [email protected] worker RM 19 800 / 90worker = RM 220 per person @ 1 day RM 220 x 96worker x 15days = RM 316 800 ( W3 ) ( W4 )
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RM 6 000 000 / 12months = RM 500 000 per months RM 630 000 : VC [ RM 130 000 ] FC [ RM 500 000 ] Vc per no.of order = RM 130 000 / 3250 unit = RM 40 RM 40 x 3500 unit = RM 140 000 RM 140 000 + RM 500 000 FC = RM 640 000 140 000 unit sales : VC [ RM 6 x 140 000 ] = RM 840 000 FC [RM 965 000 – RM 840 000 ] = RM 125 000 RM 6 x 155 000 = RM 930 000VC RM 930 000 Vc + RM 125 000 Fc = RM 1 055 000 (b) Advantages of rolling budget : · Budget more realistic and achievable · Manager will not stress because the budget is achievable · Give better motivational influence · Variances feedback more meaningful · Reduce budgetary bias (c) Two basic types of budget-setting approach : - Top down approach- The top level management prepared the budget and give a copy to bottom level management. ADV : the objective will be the same in all department and for whole company. -Bottom up approach- The individual department prepare their own budget. ADV: the top level management will be happy and grateful DSV: Time consuming and expensive . Question 4 Power Viking Company Revised Performance report for Reclamation Division Flexed Actual Variance Production (kg) 200 200 RM RM RM Wages,security costs and bonus (W1) 47,296 49,677 2,381 (A) Fuel (W2) 17,000 15,900 1,100 (F) Consumables (W3) 2,200 2,300 100 (A) Power (W4) 1,500 1,590 90 (A)
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Divisional overheads 20,000 21,000 1,000 (A) Plant maintenance 5,850 6,800 950 (A) Central services 6,550 7,200 650 (A) TOTAL 100,396 104,467 4,071 (A) W1 : Wages 8.50 x 40hours = 340hours/per workers RM8,160 x 4 = RM 32,640 Bonus 200x8 =RM 1,600 Security costs 40% x 32,460 RM 13,056 W2: RM85x200 RM 17,000 W3: Consumables 11x200 RM 2,200 W4: Power Fixed charges 500 Variable 5x200 1,500 QUESTION 5 UNIVERSITY MOTOR POOL Budget Report for March Monthly budget RM June actual RM (Over) Under Budget RM Gasoline 8,820 7,560 1,260
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Oil, minor repairs, and parts 756 1,230 (474) Outside repairs 787.50 2,450 (1,662.50) Insurance 1,050 2,100 (1,050) Salaries and benefits 5,000 5,000 - Depreciation of vehicles 4,620 5,600 (980) Total cost 21,033.50 23,940 (2,906.50) Number of automobiles in use 21 21 - Actual kilometers 63,000 63,000 - Costs per kilometer 0.334 0.38 (0.046) Supporting calculations for monthly budget amounts: Gasoline 63,000 kilometers x RM2.10 per litre = RM8,820 15 kilometers per litre Oil, minor repairs, and parts 63,000Km x RM0.012 per km = RM756 Outside repairs RM450 per auto x 21 autos = RM787.5 12 months Insurance Annual cost for one auto =RM12,000 ÷ 20 autos = RM600 Annual cost for 21 autos =21 x RM600 = RM12,600 Monthly costs =RM12,600 ÷ 12 = RM1,050 Salaries and benefits No change: RM60,000 annual cost =RM5,000 per month 12 months Depreciation : Annual depreciation Per auto = RM52,800/ 20 autos = RM2,640
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Annual depreciation for 21 autos = RM2,640 per auto x 21 = RM55,440 Monthly depreciation = RM55,440/12 mth = RM4,620
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  • Fall '17
  • Direct material price variance, Millenium Bhd

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