Voila Sdn Bhd produces three (3) different face foundation powder namely as Pamela, Qamaara and Rosy. The three products utilize the same resources but in a different ratio. The followings are the information from the budgeting report for the month of December 2019: Pamela RM Qamaara RM Rosy RM Selling price per unit Total cost per unit Labour hours per unit Machine hours per unit Production and sales units 34 30 1.5 51 30 2.5 52 45 2.5 1.5 4 9,000 9,000 8,000 Variable costs are 45% of the total costs for each unit. For the month of December 2019, there will be a limited availability of the labour hours and machine hours due to gradual maintenance works which was scheduled by the engineering department every year. Total fixed cost for December 2019 is RM430,650. The limited resources for the month of December are as follows: Machine hours Labour hours 70,000 hours 49,500 hours Determine which of the resources (machine hours or labour hours) is the limiting factor for Voila Sdn Bhd for the month of December 2019. Prepare the optimum production mix for the month of December 2019 based on the limiting factor identified above. Calculate the optimum profit for Voila Sdn Bhd. Calculate the contribution margin per unit for product Pamela, Qamaara and Rosy.
Voila Sdn Bhd produces three (3) different face foundation powder namely as Pamela, Qamaara and Rosy. The three products utilize the same resources but in a different ratio. The followings are the information from the budgeting report for the month of December 2019: Pamela RM Qamaara RM Rosy RM Selling price per unit Total cost per unit Labour hours per unit Machine hours per unit Production and sales units 34 30 1.5 51 30 2.5 52 45 2.5 1.5 4 9,000 9,000 8,000 Variable costs are 45% of the total costs for each unit. For the month of December 2019, there will be a limited availability of the labour hours and machine hours due to gradual maintenance works which was scheduled by the engineering department every year. Total fixed cost for December 2019 is RM430,650. The limited resources for the month of December are as follows: Machine hours Labour hours 70,000 hours 49,500 hours Determine which of the resources (machine hours or labour hours) is the limiting factor for Voila Sdn Bhd for the month of December 2019. Prepare the optimum production mix for the month of December 2019 based on the limiting factor identified above. Calculate the optimum profit for Voila Sdn Bhd. Calculate the contribution margin per unit for product Pamela, Qamaara and Rosy.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Voila Sdn Bhd produces three (3) different face foundation powder namely as Pamela,
Qamaara and Rosy. The three products utilize the same resources but in a different
ratio. The followings are the information from the budgeting report for the month of
December 2019:
Pamela
RM
Qamaara
RM
51
Rosy
RM
Selling price per unit
Total cost per unit
Labour hours per unit
Machine hours per unit
Production and sales units
34
52
45
30
1.5
30
2.5
2.5
1.5
4
9,000
9,000
8,000
Variable costs are 45% of the total costs for each unit. For the month of December 2019,
there will be a limited availability of the labour hours and machine hours due to gradual
maintenance works which was scheduled by the engineering department every year.
Total fixed cost for December 2019 is RM430,650. The limited resources for the month
of December are as follows:
Machine hours
Labour hours
70,000 hours
49,500 hours
Determine which of the resources (machine hours or labour hours) is the limiting factor
for Voila Sdn Bhd for the month of December 2019.
Prepare the optimum production mix for the month of December 2019 based on the
limiting factor identified above.
Calculate the optimum profit for Voila Sdn Bhd.
Calculate the contribution margin per unit for product Pamela, Qamaara and Rosy.
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