CONFIDENTIAL 1 AC/JAN 2022/ACC116

UNIVERSITI TEKNOLOGI MARA

TEST 2

COURSE : INTRODUCTION TO COST ACCOUNTING

COURSE CODE : ACC116
EXAMINATION : JANUARY 2022
TIME : 2 HOURS

INSTRUCTIONS TO CANDIDATES

1. This question paper consists of two (2) questions.

2. Answer ALL questions in the Answer Booklet. Start each answer on a new page.

3. Please check to make sure that this examination pack consists of question paper.

4. READ:

i. I declare on my honour that I answer all questions on my own without copying and/or
cheating.
ii. I also declare that I do not communicate with the other candidates throughout the final
assessment period.
iii. I agree to be given 0 mark if I was found guilty for any of these.

5. Answer ALL questions in English.

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This examination paper consists of 7 printed pages
© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL
QUESTION 1

Poksumung Sdn Bhd supplies rattan products throughout Kota Bharu, Kelantan since the year
2018. The company employs three workers to run the business. The business’s finance officer
provides the following information on the workers for the month of December 2021:

Name of Hours Units Units

Type Scheme
worker worked produced rejected
Straight
Nazrin Skilled 220 600 5
piecework
Differential
Faisal Skilled 240 610 10
piecework
Ayda Semi-skilled Time-based 250 580 2
Nina Unskilled Time-based 260 550 7

The workers were paid RM6 for each unit produced. Only good units will be taken into
consideration. The company has set a guaranteed minimum wage of RM3,400 per month for
those who were paid based on output produced. A differential piece rate is set as follow:

Output produced Rate per unit

First 300 units RM5.80
301 – 500 units RM5.60
501 – 700 units RM4.50
Above 700 units RM3.40

Time allowed to produce per unit of finished product is 24 minutes for skilled worker. No time
allowed is set for unskilled worker. Normal working hours for the company is 240 hours per
month.

Semi-skilled and unskilled workers are eligible to claim overtime. Rate per hour is standardised
at RM8 per hour and overtime is paid double of the normal rate.

Poksumung Sdn Bhd has implemented an individual bonus scheme. Under this scheme,
workers are entitled for a bonus of 60% of time saved at the bonus rate RM5 per hour.

Required:

a. Calculate the total wages earned by each worker for the month of December 2021.

b. Recalculate the total wages earned for skilled workers if the company implement a group
bonus scheme. Under this scheme, the total time saved is to be shared in proportion to
the hours worked by each worker.
(25 marks)

c. State two (2) reasons that may cause idle time.

(2 marks)

d. State three (3) reasons that may cause voluntary labour turnover.
(3 marks)
(Total: 30 marks)
QUESTION 2

A. Garment House Sdn Bhd, located in Taman Industri Seremban 3 manufactures and
supplies suits, uniform and other type of clothes. The company received an order
from a customer to produce 100 units of uniform attire. The order is named as JOB
U34. Below are the information available for the job:

Direct material Fabric AB RM2,000

Fabric 4D RM1,750
Direct labour Sewing Department 55H@RM27 per hour
Finishing Department 38H@RM35 per hour
Hire of special machine RM1,050
Administration expenses 10% of production cost
Machine hours Sewing Department 120 hours

The data related for the period ended December 2021 were as follows:

Sewing Department Finishing Department

Budgeted Overhead RM30,000 RM41,000
Budgeted machine hours 2,300 3,300
Budgeted direct labour hours 2,000 3,400

Overhead absorption is based on machine hours for Sewing Department and direct labour
hours for Finishing Department.

Required:

Prepare a Job Cost Sheet for JOB U34, showing clearly:

i. Prime cost.
ii. Production cost.
iii.Total cost.
iv. Selling price with profit mark up of 35%.
v. Selling price per unit.
(Round up the answer to the nearest round figure) (10 marks)
vi. Briefly explain the difference between profit mark-up and profit margin. (3 marks)

B. i. State three (3) characteristics of service companies. (3 marks)

ii. Identify the cost units for the following services provider:
Example: Restaurant – meals per day
a) Public transport:
b) Hospital:
c) University:
d) Hotel: (4 marks)

(Total: 20 marks)
(TOTAL: 50 marks)

END OF QUESTION PAPER