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ASSIGNMENT BMAC5203


MAY SEMESTER 2012


BMAC5203 ACCOUNTING FOR DECISION MAKING


ASSIGNMENT (60%)




OBJECTIVE:


To assess students ability to ethically use accounting information for costing, reporting, decision making, planning and control.


INSTRUCTIONS:


The assignment consists of four unrelated tasks. The details of the tasks are explained below:





TASK 1: MANAGERIAL PLANNING AND DECISIONS



Alarm Manufacturers Bhd produces three models of home alarm systems: HA15, HA27 and HA33, all of which use the same basic component. The basic components are produced in Department A. For Model HA15, the basic components are finished in department C. For models HA27 and HA33, the basic components undergo further modification in department B before being assembled in department C. Since the modification of HA27 and HA33 require similar machine and labour skills, the available capacity of department B can be used for either product.




Cost per unit of the basic component:


Cost

RM



Direct material costs

7.60



Direct labour costs

20.00



Fixed support cost (allocated based on direct labour hours)

30.00



Total cost per unit

57.60



Current production volume

6,000










1






ASSIGNMENT BMAC5203



Product cost per unit:

 

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