19125 hours 20250 hours x rm8 per hour rm9000 a

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= (19,125 hours – 20,250 hours) x RM8 per hour = RM9,000 (A) Skilled Labour Efficiency Operating Variance = (AH – RSH) x RSR = (21,250 hours – 20,250 hours) x RM8.80 = RM8,800 (A)
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Question 2 (Millenium Bhd) i. Material Price Variance Material X = RM44,625 (F) Material Y = RM76,500 (F) Material Z = RM27,625 (A) ii. Material Mix Variance Material X = RM59,925 (F) Material Y = RM28,900 (A) Material Z = RM4,420 (A) iii. Material Yield Variance = RM45,730 (A) iv. Labour Mix Variance Skilled = RM24,375 (A) Unskilled = RM12,188 (F) v. Labour Yield Variance = RM60,938 (F) vi. FOH Volume Variance = RM15,000 (A) Question 3 (Sinaran Sdn Bhd) (a) Material Mix Variances Material F = 480 (F) Material G = 630 (A) Material H = 540 (F) TOTAL = 390 (F) Material Yield Variances (Input Measure) = RM 863.10 (A) (c) Skilled Labour Rate Planning Variances = RM 720 (A) Skilled Labour Rate Operating Variances = 840 (F) Question 4 a) i. Material mix variances A : = RM 93,600 F B : = RM 35,250 A C : = RM 11,625 A ii. Material yield variance
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= RM 51,975 A iii. Labour Mix Variance Skilled = RM73,500 (A) Unskilled = RM36,750 (F) iv. Labour Yield Variance = RM60,000 (F) Question 2 (Millenium Bhd) i. Material Price Variance Material X = RM44,625 (F) Material Y = RM76,500 (F) Material Z = RM27,625 (A) ii. Material Mix Variance Material X = RM59,925 (F) Material Y = RM28,900 (A) Material Z = RM4,420 (A) iii. Material Yield Variance = RM45,730 (A) iv. Labour Mix Variance Skilled = RM24,375 (A) Unskilled = RM12,188 (F) v. Labour Yield Variance = RM60,938 (F) vi. FOH Volume Variance = RM15,000 (A)
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Question 1 Production Budget 2017 2017 2017 2017 2018 Q1 Q2 Q3 Q4 Q1 Sales 15,000 13,000 13,000 11,000 10,500 Add: Desired closing inventory 6,500 6,500 5,500 5,250 7,250 (Less): Opening inventory (7,500) (6,500) (6,500) (5,500) (5,250) Production (in pair of shoes) 14,000 13,000 12,000 10,750 12,500 Purchase Budget 2017 2017 2017 2017 2018 Q1 Q2 Q3 Q4 Q1 Material used in production (units) 1 unit of shoes = 4 unit of material CO3 foam 56,000 52,000 48,000 43,000 50,000 Add: Closing inventory 36,400 33,600 30,100 35,000 (Less): Opening inventory (39,200) (36,400) (33,600) (30,100) (35,000 ) Material to be purchased 53,200 49,200 44,500 47,900 Material price (RM3.50 per unit of material CO3 foam) RM186,20 0 RM172,20 0 RM155,75 0 RM167,65 0 Labour Cost Budget 2017 2017 2017 2017 Q1 Q2 Q3 Q4 Productions (in pair) 14,000 13,000 12,000 10,750 Hours required per pair 8 8 8 8 Total hour required 112,000 104,000 96,000 86,000 Hours available 106,560 106,560 106,560 106,560 Extra hours (overtime) 5,440 0 0 0 Overtime payment 3,000 hrs x 130% x RM8 RM31,200 0 0 0
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2,440 hrs x 150% x RM8 RM29,280 Basic payment RM1,280 per mth x 222 workers x 3 mths RM852,480 RM852,480 RM852,480 RM852,480 Total labour cost RM912,960 RM852,480 RM852,480 RM852,480 QUESTION 2 a) i) April May June Actual sales (Unit) 3,500 3,800 5,000 Seasonal variation -500 +200 0 Trend sales 3,000 4,000 5,000 Every month, the trend sales increase by 1,000 units. ii) Sales Budget July August September Oct Nov Trend sales (units) 6,000 7,000 8,000 9,000 10,000 Seasonal variation +400 -300 0 -600 Budgeted sales 6,400 6,700 8,000 8,400 10,400 b) Production Budget July August Sept Sales budget (units) 6,400 6,700 8,000 Add: Planned closing stocks 5,360 6,400 6,720 @ (8,400 x 0.8) 11,760 13,100 14,720 Less: Opening stocks (5,120) (5,360) (6,400) Required Production (units) 6,640 7,740 8,320 Material Purchase Budget July August September Production Budget (units) 6,640 7,740 8,320
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Material -MAT101/unit 0.6 kg 0.6 kg 0.6 kg Material usage (kg) 3,984 4,644 4,992 Add: planned closing stocks 1,992 2,322 2,496 5,976 6,966 7,848 Less: opening stocks (1,836) (1,992) (2,322) Materials required (kg) 4,140 4,974 5,166 Cost per kg (RM) 5.00 5.00 5.00 Total purchase cost (RM) 20,700 24,870 25,830 ii) Labour Cost Budget- 3 rd quarter Assembly Finishing Total Component parts (units) 22,700 22,700 Hours/unit 2 0.8 Total hours required 45,400 18,160 Rate per hour RM5.50 RM6
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