MAF201

TUTORIAL: TEST 2

MAF201 TEST 2 QUESTIONS

TUTORIAL
2

 Test 2 Questions:
 July 2024
 Jan 2024
 July 2023
 Jan 2023
 July 2022
 Jan 2022
 July 2021
 Jan 2021
3 TEST2 JULY 2024
TEST2 JULY 2024
4 Q1 A TFQ
1. T
2. T
3. F
Variable Cost per unit: RM
Direct Material 36.00
Direct Labour 18.00
Variable Manufacturing OH 36.00
?
Fixed Costs: RM
Ren 24,000
Salaries 100,000
Advertising 80,000
Depreciation on Equipment 6,000
Manufacturing OH 90,000
?
TEST2 JULY 2024
5

4. b.
i) BEP 5,000 units
NP = SX – VX – FC
0 = SX – VX – FC
BEP [RM] RM750,000
BEP [Units] x SP

ii) MOS 1,000 units

MOS = Sales [units] – MOS [units]
MOS [RM] = MOS [units] x SP RM150,000
iii) Net Profit
NP = SX – VX – FC RM600,000
TEST2 JULY 2024
6
c.
 New Variable Cost = RM36 x 120% = RM43.20
 New Direct Labour Cost per unit = RM18 x 110% = RM19.80
 New TVC pr unit = RM36 + RM19.80 + RM43.20 = RM99.00
 New Fixed Cost = RM300,000 + RM4,995 = RM304,995


 NP = SX – VX – FC
 RM649,995 = RM150X – RM99X – RM304,996
 X = 12,745 units
TEST2 JULY 2024
7

Product SP VC Contribution Sales Mix WACM

[RM] [RM] [RM] [RM]
Wireless Speakers 150 70 80 6,000/15,000 = 40% 32
On-the-Go Speakers 200 80 120 9,000/15,000 = 60% 72

Total ?

BEP (all products) = TFC

WACM
= RM300,000 + RM30,000
RM104.00
= 3,173 units
BEP (single product)= 5,000 units
Advice: The company should proceed with the production of the new proposal as
new BEP units for multi-products are lower by 1,827 units (5,000 units – 3,173
units). This means the company will need to sell fewer units to achieve the BEP.
TEST2 JULY 2024
8

QUESTION 2
Multiple Choice Questions.
1. A
2. B
3. B
4. C
5. D
TEST2 JULY 2024 Jaguh Sdn Bhd
Cash Budget Cash Budget for the Third Quarter of 2024
July August September
9 RM RM RM
1 Opening cash balance 15,000 27,900 59,170
Add: Cash Receipts
Cash Sales 9,800 13,720 17,640
2 Collection from Credit Sales 54,000 90,000 126,000
10,000 - -
Dividend from Fixed Deposits
Total Cash Receipts ? ? ?
Total Cash Available ? ? ?
Less: Cash Payments
Payment to Creditors/Suppliers 15,000 20,000 22,000
Wages 18,000 15,000 15,000
3 Production OH 4,000 4,000 4,000
Sales Commission 650 750 800
Sales OH 14,250 15,200 17,100
Admin OH 9,000 10,000 8,000
Purchase of new CM - 7,500 17,500
Rental of Warehouse - - 6,000
Total Cash Payments ? ? ?
4
Closing cash balance ?
TEST2 JULY 2024
10

Sales June July August Sept

Total Sales 60,000 100,000 140,000 180,000

Cash Sales 10% x 100,000 x 98% 10% x 140,000 x 98% 10% x 180,000 x 98%
[10%; 20% trade disc] = 9,800 = 13,720 = 17,640

Credit Sales 90% x 60,000 90% x 100,000 90% x 140,000

[90% after 1 month] = 54,000 = 90,000 = 126,000

Production OH
RM6,000 – RM2,000 = RM4,000 per month
TEST2 JULY 2024
11

Sales OH June July August Sept

Total Sales OH 13,000 15,000 16,000 18,000

Sales Commission 5% x 13,000 5% x 15,000 5% x 16,000
[5% after 1 month] = 650 = 750 = 800

Sales OH 95% x 15,000 95% x 16,000 95% x 18,000

[95% after same = 14,250 = 15,200 = 17,100
month]

Purchase of a new Cutting Machine

30% x RM25,000 = RM7,500 [pay in August]
70 x RM25,000 = RM17,500 [pay in September]
12 TEST2 JULY 2024
TEST2 JAN 2024
13 Q1 A TFQ
1. T
2. F
3. T

Variable Cost per packet: RM

Materials 1.80
Labour [12 + 8 + 5] / 60 minutes x RM3 1.25
Overhead Costs [RM285,000 x 60%] / [15,000 x 12 months] 0.95
?

CS Ratio = SP – VC
SP
CS Ratio = RM5 – RM4 = 20%
RM5
= 0.2
TEST2 JAN 2024
14

4. b.
i) BEP [RM] = TFC RM114,000/ 0.2
CS Ratio RM570,000

ii) MOS 184,000 packets

iii) NP = SX - VX - FC RM4.48
SP =
TEST2 JAN 2024
15
c.
 Net profit using marginal costing approach:
 New Fixed Costs = RM114,000 + [RM250,000/5]
= RM164,000
 New total Variable Cost per unit = RM1.80 X 1.25] + RM1.25 + RM0.95
= RM4.45
 New Selling Price = RM6
 New Sales Volume = [15,000 x 12]/0.6 = 300,000

Marginal Costing Approach RM

Sales Revenue [300,000 x RM6] 180,000
Less: Variable Costs [300,000 x RM4.45] [1,335,000]
Contribution Margin 465,000
Less: Total Fixed Costs [164,000]
Net Profit ?
TEST2 JAN 2024
16

Product SP VC Contribution Sales Mix WACM

[RM] [RM] [RM] [RM]
Beef Frankfurter 5.00 4.00 1.00 0.35 0.35
Lamb Frankfurter 7.00 5.00 2.00 0.35 0.70

Lamb Ball 9.00 6.50 2.50 0.30 0.75

Total ?
BEP (all products) = TFC
WACM
= RM114,000 + RM69,750
RM1.75
= 105,000 packets
TEST2 JAN 2024
17

Product SP VC Contribution Sales Mix WACM

[RM] [RM] [RM] [RM]
Beef Frankfurter 5.00 4.00 1.00 0.40 0.4
Lamb Frankfurter 7.00 5.00 2.00 0.30 0.6

Lamb Ball 9.00 6.50 2.50 0.30 0.75

Total ?
BEP (all products) = TFC
WACM
= RM114,000 + RM69,750
RM1.80
= 102,083 packets

Advice:
The business should proceed with Proposal 2 because the BEP is lower by 2,917
packets (105,000 – 102,083).
TEST2 JAN 2024
18

QUESTION 2
Multiple Choice Questions.
1. A
2. D
3. C
4. B
5. D
TEST2 JAN 2024
19
Cocoa Couture Sdn Bhd
Sales Budget for the year 2024
Products Couverture Compound
Sales unit 40,000 20,000
(x) Selling Price [RM] 60.00 40.00
Sales Value [RM] ? ?

Cocoa Couture Sdn Bhd

Production Budget for the year 2024
Couverture Compound
Sales unit (packets) 40,000 20,000
(+) Closing Stock 5,000 1,000
(-) Opening Stock (3,000) (1,000)
Units to be produced ? ?
TEST2 JAN 2024
20
Direct Material Purchase Budget
Cocoa Couture Sdn Bhd
Direct Material Purchase Budget for the year 2024

Cocoa Liquor Butter

kg Total Total
Units to be produced
Conventure: 42,000 2 84,000 1 42,000
Compound: 20,000 3 60,000 2 40,000
Total usage of direct material ? ?
(+) Closing stock 10,000 5,000
(-) Opening stock (6,000) (2,000)
Unit to be purchased ? ?
(x) Purchase Price Per Unit 2.50 3.50
Purchase Value 370,000 297,500
TEST2 JAN 2024
21
Direct Labour Budget
Cocoa Couture Sdn Bhd
Direct Labour Budget for the year 2024
Couverture Compound
Production Unit 42,000 20,000
Direct Labour hours 2.50 1.50
Total Direct Labour hours ? ?
(x) Rate per hour (RM) 6.00 6.00
Total Direct Labour Cost RM630,000 RM180,000
TEST2 JAN 2024
22
Production Cost Budget
Cocoa Couture Sdn Bhd
Production Cost Budget for the year 2024
Couverture Compound
RM RM
Direct Materials: DM Usage x Rate DM usage x Rate

Cocoa liquor 84,000 x 2.50 210,000 60,000 x 2.50 ?

Butter 42,000 x 3.50 147,000 40,000 x 3.50 ?
Direct Labour ? ?
Production Overhead
Indirect Material 67,742 32,258
Dep of PM 5,419 2,581
Supervision 105,000/135,000 ? 30,000/135,000 x ?
x RM40,000 RM40,000
Factory Maintenance 42,000/62,000 x ? 20,000/62,000 x ?
RM15,000 RM15,000
Total Production Costs 1,101,433 518,567
23 TEST2 JULY 2023
TEST2 JULY 2023
24 Q1 A TFQ
1. T
2. F
3. F

Variable Cost per packet: RM

Direct Materials [Coffee] 2.00
Direct Labour 1.00
Selling & Distribution 0.85
Other OH Expenses RM45,000/300,000 2.00
?

Fixed Costs: RM
Administration expenses 155,000
Other OH expenses 45,000

?
TEST2 JULY 2023
25

4. b.
i) BEP = TFC/CM 100,000 packets
= RM200,000/RM2.00
BEP [RM] RM600,000
= BEP [units] x SP
= 100,000 x RM6.00

ii) MOS 200,000

MOS [RM] RM1,200,000
iii) NP =SX - VX - FC RM400,000
TEST2 JULY 2023
26 Variable Cost per unit: RM
Direct Materials [Coffee] 2.10
Direct Labour 1.00
Selling & Distribution 0.85
Other OH Expenses RM45,000/300,000 0.15
Total VC per unit 4.10
Total FC RM200,000 + RM20,000 220,000
Selling Price 6.60
Sales Unit 270,000 units

c.
 NP = SX – VX – FC
 NP = RM6.60 x 270,000 – (RM4.10 x 270,000) - RM220,000
 NP = RM455,000
TEST2 JULY 2023
27
Product SP VC Contribution Sales Mix WACM
[RM] [RM] [RM] [RM]
Golden Roast 6.00 4.00 2.00 50% 1.00
Ketagih Coffee 8.00 5.00 3.00 25% 075
Saigon Coffee 10.00 5.00 5.00 25% 1.25

Total 2.00 ?

BEP (all products) = TFC

WACM
= RM240,00
RM3.00
= 80,000 boxes
BEP (single product)= 6,700 boxes
The company should proceed with the new proposal because the BEP decreased
by 20,000 units [100,000 – 80,000] which means that the company now needs to sell
less in order to break even.
TEST2 JULY 2023
28

QUESTION 2
Multiple Choice Questions.
1. B
2. C
3. A
4. D
5. D
TEST2 JULY 2023
29
Lurve Design Sdn Bhd
Sales Budget for July 2023
Products Exclusive Luxury
Sales unit 1,788 1,985
(x) Selling Price [RM] 250 300
Sales Value [RM] ? ?

Lurve Design Sdn Bhd

Production Budget for July 2023
Exclusive Luxury
Sales unit (packets) 1,788 1,985
(+) Closing Stock 132 165
(-) Opening Stock (120) (150)
Units to be produced ? ?
TEST2 JULY 2023
30
Direct Material Purchase Budget
Lurve Design Sdn Bhd
Direct Material Purchase Budget for July 2023

Brocade Lace
metres Total metres Total
Units to be produced
Exclusive: 1,800 2.5 4,500 2 3,600
Luxury: 2,000 3 6,000 2.5 5,000
Total usage of direct material ? ?
(+) Closing stock 315 210
(-) Opening stock (300) (200)
Unit to be purchased ? ?
(x) Purchase Price Per Unit 50 35
Purchase Value RM525,750 ?
TEST2 JULY 2023
31
Direct Labour Budget
Lurve Design Sdn Bhd
Direct Labour Budget for July 2023
Exclusive Luxury
Production Unit (Packets) 1,800 2,000
Direct Labour hours 3 2
Total Direct Labour hours ? ?
(x) Rate per hour (RM) 10 10
Total Direct Labour Cost RM54,000 ?
TEST2 JULY 2023
32
Production Cost Budget
Lurve Design Sdn Bhd
Production Cost Budget for July 2023

Exclusive Luxury
RM RM
Direct Materials: DM Usage x Rate DM usage x Rate

Brocade 4,500 x RM50 225,000 6,000 x RM50 ?

Lace 3,600 x RM35 126,000 5,000 x RM35 ?
Direct Labour ? ?
Variable Production OH 2,000 2,500
Fixed Production OH 1,800/3,800 x ? 2,000/3,800 x ?
RM7,500 RM7,500
Total Production Costs 410,553 521,447
33 TEST2 JAN 2023
TEST2 JAN 2023
34 Q1 A TFQ
1. T
2. F
3. F

Variable Cost per unit: RM

Direct Materials 720,000/6,000 120
Direct Labour 1,080,000/6,000 180
Production OH [¾ x 640,000]/6,000 80
Selling Expenses [2/3 x 630,000]/6,000 70
?

Fixed Costs: RM
Production OH ¼ x 640,000 160,000
Selling expenses 1/3 x 630,000 210,000
Fixed Administrative 330,000
?
TEST2 JAN 2023
35

4. b.
i) BEP = TFC/CM 2,800 units
= RM700,000/[RM700 – RM450]

ii) MOS 3,200 units

MOS [RM] = MOS [units] x SP RM2,240,000
iii) NP = SX - VX - FC RM800,000
TEST2 JAN 2023
36

 Ii) New VC per unit = [120 x 110%] + 180 + 80 + 70

= RM462
New FC = 700,000 + 30,000 = 730,000
New Sales Volume = 6,000 x 105% = 6,3000 units
 NP = SX – VX - FC
= [SP – VC]X – FC
= [(RM700 – RM462)6,300 – RM730,000
= RM769,400
This marketing plan should not be implemented because the net profit will be
reduced by RM30,600
TEST2 JAN 2023
37
Product SP VC Contribution Sales Mix WACM
[RM] [RM] [RM] [RM]
Casserole 700 450 250 3/4 187.50
Skillet 550 240 310 1/4 77.50

Total ?

BEP (all products) = TFC

WACM
= RM728,750
RM265
= 2,750

Old BEP units = 2,800 units

New BEP units = 2,750 units

The company should proceed with the plan because the BEP is lower with the
new plan by 50 units [2,800 – 2,750] which means that the company now needs to
sell less in order to break even.
TEST2 JAN 2023
38

QUESTION 2
Multiple Choice Questions.
1. B
2. A
3. C
4. C
5. D
TEST2 JAN 2023 SweetBelle Cosmetic Sdn Bhd

Cash Budget Cash Budget for the fourth quarter of 2023

39
October November December
1 RM RM RM
Opening cash balance (14,500) (13,750) (15,510)

2 Add: Cash Receipts

Cash Sales 18,000 20,000 26,000
Receipts from debtors 138,600 151,200 169,200
8,500 8,500 8,500
Interest on fixed deposits
Total Cash Receipts ? ? ?
Total Cash Available ? ? ?
Less: Cash Payments
3 Payment to Creditors 81,730 87,460 89,010
Direct Labour 19,500 20,500 21,500
Variable OH 14,920 15,840 17,520
Fixed OH 15,800 15,800 15,800
Advertising 14,400 16,000 20,800
Office expenses 18,000 20,000 26,000
4 New Motor Van - 1,200
Consultation Fee 5,500
TEST2 JAN 2023
40

Sales Aug Sept Oct Nov Dec

Sales 150,000 160,000 180,000 200,000 260,000

Cash Sales (10%) 15,000 16,000 18,000 20,000 26,000
Credit Sales (90%) 135,000 144,000 162,000 180,000 234,000
40% Credit Sales 57,600 64,800 72,000
1 month after
60% Credit Sales 81,000 86,400 97,200
2 month after

Total Collection 138,600 ? ?

TEST2 JAN 2023
41 Sept Oct Nov Dec

Total Purchases 76,150 85,450 88,800 89,150

Payment:
60% in the month 51,270 53,280 53,490
of purchase
40% 1 month after 30,460 34,180 35,520
Total Payment ? ? ?

Sales Sept Oct Nov Dec

Production units 11,700 12,800 13,400 15,200

X Variable OH [RM] 1.20 1.20 1.20 1.20
Total Variable OH 14,040 15,360 16,080 18,240
2/3 of the month 9,360 10,240 10,720 12,160
incurred
1/3 1 month after 4,520 4,680 5,120 5,360
Total OH paid ? ? ?
42 TEST2 JULY 2022
TEST2 JULY 2022
43 Q1 A TFQ
1. F
2. T
3. F

Variable Cost per unit: RM

Direct Materials 600,000/6,000 30
Direct Labour 240,000/6,000 12
Production OH 310,000 – [RM10 x 20,000] 10
Selling Expenses [513,000 - 213,000]/20,000 15
?

Fixed Costs: RM
Production OH 110,000
Selling expenses 213,000
Other OH 365,000
?
TEST2 JULY 2022
44

4. b.
i) BEP =TFC/CM 16,000 units
= RM668,000/ [RM110 – RM67]
BEP [RM] RM1,760,000

ii) MOS 4,000 units

MOS [RM] RM440,000

It shows that the maximum number of units to be reduced to reach

break-even is 4,000 units. If management reduces more than these
units, the company will incur a loss.
TEST2 JULY 2022
45
c.
New Sales Volume = 115% x 20,000 = 23,000 units
New FC = 688,000 + 150,000 = RM838,000
New SP = 110% x RM110 = RM121
New VC per unit = (105% x 30) + 12 + 10 + 15 = RM68.5

NP = SX – VX - FC
= [SP – VC]X – FC

NP = [(RM121 – RM68.5 ) x 23,000 units ] – RM838,000

= RM 369,500
Net profit will increase by RM197,500 (RM369,500 – RM172,000 - old profit)
TEST2 JULY 2022
46
Product SP VC Contribution Sales Mix WACM
[RM] [RM] [RM] [RM]
Sport 110 67 43 20,000/50,000 = 40% 17.20
Casual 150 80 70 30,000/50,000 = 60% 42.00

Total ?

BEP (all products) = TFC

WACM
= RM688,000 + RM21,986
RM59.20
= 11,993 units

Old BEP units = 16,000 units

The company should proceed with the plan because the BEP is lower with the
new plan by 4,007 [16,000 – 11,993] which means that the company now needs to
sell less to break even.
TEST2 JULY 2022
47

QUESTION 2
Multiple Choice Questions.
1. C
2. D
3. C
4. D
5. D
TEST2 JULY 2022
48
GlassNetwork Sdn Bhd
Sales Budget for August 2022
Products NGFM RGFM
Sales unit 1,500 1,400
(x) Selling Price [RM] 400 500
Sales Value [RM] ? ?

GlassNetwork Sdn Bhd

Production Budget for August 2022
NGFM RGFM
Sales unit 1,500 1,400
(+) Closing Stock 20,500 13,500
(-) Opening Stock (20,000) (10,000)
Units to be produced ? ?
TEST2 JULY 2022
49
Direct Material Purchase Budget
GlassNetwork Sdn Bhd
Direct Material Purchase Budget for August 2022

Mirror Stainless steel

Total Total
Units to be produced RM RM
NGFM: 2,000 8 16,000 4 8,000
RGFM: 4,900 10 49,000 6 29,400
Total usage of direct material ? ?
(+) Closing stock 1,100 1,890
(-) Opening stock 1,000 1,800
Unit to be purchased ? ?
(x) Purchase Price Per Unit 10 15
Purchase Value 651,000 ?
TEST2 JULY 2022
50
Direct Labour Budget
GlassNetwork Sdn Bhd
Direct Labour Budget for August 2022

Skilled Semi-skilled
Production Units:
NGFM: 2,000 4 8,000 2 4,000
RGFM: 4,900 6 29,400 3 14,700
Total Direct Labour hours ? ?
(x) Rate per hour (RM) 10 8
Total Direct Labour Cost RM374,000 ?
TEST2 JULY 2022
51
Production Cost Budget
GlassNetwork Sdn Bhd
Production Cost Budget for August 2022

NGFM RGFM
RM RM
Direct Materials: DM Usage x Rate DM usage x Rate

Mirror: 16,000 10 160,000 10 ?

Stainless steel: 8,000 15 120,000 15 ?
Direct Labour ? ?
Skilled: 8,000 10 80,000 10 294,000
Semi skilled: 4,000 8 32,000 8 117,600
Variable Production OH 3,000
Fixed Production OH 2,000/6,900 x 3,478 4,900/6900 x ?
12,000 12,000
Total Production Costs 398,478 ?
52 TEST2 JAN 2022
TEST2 JAN 2022
53

Variable Cost per jar: RM

Direct Materials RM660,000/60,000 11.00
Direct Labour RM420,000/60,000 7.00
Direct Expenses RM420,000/60,000 7.00
Variable Selling Expenses RM150,000/60,000 2.50
?

Fixed Costs: RM
Fixed Production OH 330,750
Fixed Administration Expenses 280,500
Fixed Selling & Distribution 300,000
?
TEST2 JAN 2022
54

4. b.
i) BEP 40,500
BEP [RM] RM2,025,000

ii) MOS 19,500

MOS [RM] RM975,000
TEST2 JAN 2022
55
c.
 Predict the new selling price per packet to be set for Ququrose Chantique if
the company wishes to earn a net profit of RM632,000 for the year 2022.
 Selling price = Total Fixed Cost + Target Profit + Total Variable Cost
Sales Volume
 Selling price = (RM911,250 + RM40,750) + RM632,000 + (RM30 x 72,000)
(120% x 60,000)
 Selling price = RM3,744,000 = RM52.00
72,000
d.
Thus, the company should proceed with the new business plan as new BEP
packets are lower than single product BEP by 2,647 packets (40,500 – 37,853).

TRUE OR FALSE QUESTIONS

For each of the following statements, indicate whether it is TRUE or FALSE.
1) T
2) F
TEST2 JAN 2022
56

QUESTION 2
Multiple Choice Questions.
1. D
2. B
3. B
4. C
TEST2 JAN 2022
57
ABC Limited
Sales Budget for January 2022
Products A B
Sales unit 3,300,000 1,800,000
(x) Selling Price [RM] 440 360
Sales Value [RM] ? ?

ABC Limited
Production Budget for January 2022
A B
Sales unit 7,500 5,000
(+) Closing Stock 2,400 1,600
(-) Opening Stock (3,000) (2,000)
Units to be produced ? ?
TEST2 JAN 2022
58
Direct Material Purchase Budget
ABC Limited
Direct Material Purchase Budget for January 2022

DM 11 DM21 DM 31
Total Total
Units to be produced
A: 6,900 5 34,500 - 5 34,500
B: 4,600 - 10 46,000 5 23,000
Total usage of direct material ? ?
(+) Closing stock [90% X OS] 22,050 18,450 15,750
(-) Opening stock (24,500) (20,500) (17,500)
Unit to be purchased ? ?
(x) Purchase Price Per Unit RM2 RM4 RM1
Purchase Value 64,100 ? ?
TEST2 JAN 2022
59
Direct Labour Budget
ABC Limited
Direct Labour Budget for January 2022
A B
Production Units 6,900 4,600

X Hour per unit 2 4

Total Direct Labour hours 13,800 18,400
(x) Rate per hour (RM) 12.50 12.50
Total Direct Labour Cost ? ?