Industri Minuman Herba (IMH) produces a special drink called "Jus-Sihat". It has been operating for the last 4 years. Recently, the management attempted to analyse the costs according to their behaviour. As the junior accountant of the business, you are assigned the task to redefine the cost analysis as requested by the management. During the early stage of your research, you have discovered the following cost information: Level of Production 5,000 bottles 10,000 bottles Production Costs Total Cost Total Cost (RM) (RM) Direct materials 8,000 16,000 Direct labour 9,500 19,000 Utilities 2,000 3,300 Rent 4,000 4,000 Maintenance 800 1,400 Supervisory 1,000 1,000 salaries

Industri Minuman Herba (IMH) produces a special drink called "Jus-Sihat". It has been operating for the last 4 years. Recently, the management attempted to analyse the costs according to their behaviour. As the junior accountant of the business, you are assigned the task to redefine the cost analysis as requested by the management. During the early stage of your research, you have discovered the following cost information: Level of Production 5,000 bottles 10,000 bottles Production Costs Total Cost Total Cost (RM) (RM) Direct materials 8,000 16,000 Direct labour 9,500 19,000 Utilities 2,000 3,300 Rent 4,000 4,000 Maintenance 800 1,400 Supervisory 1,000 1,000 salaries

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter12: Activity-based Management

Section: Chapter Questions

Problem 2CE: Assume that at the beginning of 20x2, Cicleta trained the 2 assembly workers in a new approach that...

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