Raw material

Below are the costs for the month of April 2021 for Cemerlang Sdn, Bhd.

Raw material used20,000
Factory operators wages20,000
Insurance for factory2,000
Administration manager’s salaries6,000
Carriage inwards for raw materials1500
Salaries for delivery van’s driver3,000
Indirect labour cost13,000
Advertising costs7,000
Costing clerks’ salaries3,000
Bought shelves for administration office15,000


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  1. Apportion the cost of rental based on the following percentage: Production overhead 25%, Administration overhead 25%, Selling overhead 25% and Distribution overhead 25%.
  1. Utilities will be apportioned based on the following percentage: Production overhead 50%, Administration overhead 20%, Selling Overhead 10% and Distribution overhead 20%.


Prepare the operating statement for the Cemerlang Sdn. Bhd. [Total: 15 marks]

Question 4

  1. Below are the costs and production volume of Aunty Annie Bakery Sdn. Bhd. during the months of April and May 2021.
Material costs30,00050,00070,000
Depreciation – equipment5,0005,0005,000
Advertising costs16,00026,00036,000
Indirect labour60,000100,000140,000
Warehouse costs8,00013,00018,000


  1. Analyse the costs according to their behaviour. [9 marks]
  1. Predict the costs for the month of June when 50,000 units will be produced.

[6 marks]

[Total: 15 marks]

Question 5

The following information are the information for Sapphire Enterprise.

Delivery period2 to 4 weeks
Maximum consumption400 units
Minimum consumption120 units
Units required per annum20,000
Ordering costRM20
Annual cost of carrying a unit in stockRM5

You are required to calculate for each component:

  1. Economic order quantity [2 marks]
  1. Reorder level [2 marks]
  1. Minimum stock level [3 marks]

Maximum stock level [3 marks]

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