CONFIDENTIAL 1 AC/APR 2023/ MAF251

UNIVERSITI TEKNOLOGI MARA

COMMON TEST

COURSE : COST AND MANAGEMENT ACCOUNTING 2

COURSE CODE : MAF251
EXAMINATION : APRIL 2023
TIME : 1 HOUR 15 MINUTES

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. Do not bring any material into the examination room unless permission is given by
the invigilator.

4. Please check to make sure that this examination pack consists of:

i. the Question Paper

ii. an Answer Booklet – provided by the Faculty

5. Answer ALL questions in English.

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

This examination paper consists of 4 printed pages

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CONFIDENTIAL 2 AC/APR 2023/ MAF251

QUESTION 1

A. Accounting information is generated by various accounting divisions, namely the

financial accounting and cost and management accounting divisions. Each of these
divisions serves the needs of different categories of users. Effective accounting
information gives managers the necessary information to make informed judgments and
decisions.

Required:

i. Briefly explain the requirement for accounting information for the following users:
a) Managers
b) Shareholders
c) Creditors
(3 marks)

ii. List SIX (6) characteristics of useful management accounting information.

(3 marks)

B. Farah, the Group Chief Financial Officer for Titan Bhd, has been confronted with the
following scenarios:

i. Mr. Johan, the factory manager, is considering whether it is more economical to

outsource partially assembled components or to purchase individual components and
assemble them in-house.

ii. Farah needs to evaluate the past and current financial performance and financial
position of the business. Thus, she had assigned her account manager to prepare
the full sets of financial statements for the company

iii. Titan Bhd's chairman had asked Farah to prepare a presentation for the upcoming
board of directors’ meeting that will include cash budget and profitability analysis.

iv. Farah is concerned about the factory's increasing expenses. She requested that the
factory manager and the cost accountant ascertain the overall production costs and
calculate the unit costs of each product that the company produced.

Required:

Based on each scenario above, determine whether it is a Management Accounting or

Financial Accounting role.
(4 marks)
(Total: 10 marks)

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CONFIDENTIAL 3 AC/APR 2023/ MAF251

QUESTION 2

Axel Sdn Bhd is a manufacturing company that produces a portable blender called the
MiniGrind. The company uses a standard costing system for its production plan and control
every month and the following is the budgeted data for the month of March 2023.

RM RM
Sales revenue (16,500 units) 577,500
Less costs:
Direct materials (33,000 kgs) 165,000
Direct labour (24,750 hours) 86,625
Variable overheads 49,500
Fixed overheads 66,000
Budgeted profit 210,375

The variable overhead and fixed overhead are absorbed based on direct labour hours and
units produced respectively.

Below are the actual results for the month of March 2023:

RM
Sales revenue 568,000
Less costs:
Direct materials 172,480
Direct labour 108,000
Variable overheads 47,200
Fixed overheads 67,500

The actual selling price for the MiniGrind in the month of March 2023 is RM35.50 per unit.
The actual direct material price per kg is lower by RM0.10 from the standard price while the
actual direct labour hours spent during the period were 28,800 hours.

Required:

a. Prepare a standard cost card for one unit of MiniGrind.

(4 marks)

b. Calculate the following variances:

i. Direct material price and usage variance
ii. Direct labour rate and efficiency variance
iii. Variable overhead expenditure and efficiency variance
iv. Fixed overhead expenditure and volume variance
v. Sales margin price and volume variance
(15 marks)

c. Construct a statement reconciling the budgeted and actual profit for the month of March
2023.
(3 marks)

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CONFIDENTIAL 4 AC/APR 2023/ MAF251

d. i. Define the following terms:

a) Ideal Standards
b) Current Standards
c) Standard cost
d) Variance
(4 marks)

ii. State TWO (2) possible reasons for the following variances:

a) Favourable direct material price variance

b) Adverse direct labour efficiency variance.
(4 mark)
(Total: 30 marks)

END OF QUESTION PAPERS

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