PSPM 2 TEST YOUR SELF

A company sells products for RM70 each with a variable cost of RM50 per unit. Total fixed costs are RM20,000. Calculate the break-even point in units.

• • 400 units

• 1,000 units

• 285 units

• 1,200 units

Under marginal costing, the product cost per unit is RM3.90. If the fixed manufacturing overhead (POR) is RM0.40 per unit, what is the product cost per unit under absorption costing?

• RM3.50

• RM4.30

• RM3.90

• RM4.70

A company has an absorption costing net profit of RM41,600. There was no beginning inventory, but 6,000 units remain in ending inventory with a fixed overhead rate of RM0.40 per unit. Calculate the marginal costing net profit.

• RM44,000

• RM41,600

• RM39,200

• RM43,200

For Job RB1, the work-in-process (Dec 1) is RM18,000, direct materials are RM3,600, and direct labour is RM3,000. If overhead is applied at RM6.25 per machine hour and Job RB1 used 900 hours, what is the total cost of Job RB1?

• • RM24,600

• • RM30,225

• • RM21,600

• • RM33,825

A department estimates total overhead of RM360,000 and 60,000 direct labour hours. If a specific job uses 4,000 actual direct labour hours, how much overhead should be applied?

• • RM24,000

• RM360,000

• RM14,000

• RM28,000

In the Assembly Department, 195,000 units were completed. Ending WIP is 15,000 units, which are 40% complete for conversion costs. Calculate the equivalent units for conversion.

• • 195,000

• • 210,000

• 201,000

• 204,000

Total conversion costs (Beginning WIP + Current) are RM800,000. If equivalent units for conversion are 201,000, what is the cost per equivalent unit (to 2 decimal places)?

• • RM4.00

• RM3.98

• RM2.00

• RM5.12

The standard price for material is RM8.00/kg. A company purchased 10,000kg at an actual price of RM8.30/kg. Calculate the material price variance.

• • A. RM3,000 Favourable

• • RM3,000 Unfavourable

• • RM300 Unfavourable

• • RM2,000 Favourable

Nick’s Bakery produces "Black Forest" cake with a CM of RM42 per unit. Each unit uses 0.8kg of flour. What is the contribution margin per kg of flour?

• • RM33.60

• RM42.00

• RM52.50

• RM28.70

Product RS has a contribution margin of RM18 and requires 4 machine hours. Product RT has a contribution margin of RM12 and requires 2 machine hours. Which product should be prioritized if machine hours are limited?

• • A. Product RS

• Product RT

• Both equally

• Neither