Answer Happy

MyABC Sdn Bhd produces three products A, B and C for which the standard cost and output are as follows: Products Output (units) Direct material per unit (RM) Direct labour per unit (RM) Labour hour per unit Machine hour per unit No of purchase requisition No of machine setups A 10,000 50 30 3 4 600 120 Department X (labour RM 1,200,000 intensive) Production overhead splits by department is given in table below: Production over head Department Y (machine RM 1,500,000 intensive) Production overhead splits by activity: Activities Receiving and inspection Production scheduling/setup Number of batch received/inspected 2,500 Number of batches for scheduling/setups 400 B 20,000 40 Parameters 40 4 4 800 130 RM 1,400,000 RM 1,300,000 Labour (Total hours) 200,000 500,000 a. Prepare cost statement using activity-based costing (ABC) method. C 30,000 32 48 5 7 1,000 150 b. Comments on the results you have obtained using ABC method. (6 marks) (4 marks)