BM056-3.

5-3 MAT

Individual Assignment

Page 1 of 2

Instructions:
1.
Cover page of the assignment MUST include NAME, STUDENT ID, SUBJECT CODE,
LECTURERS NAME and DATE of SUBMISSION
2.
Your assignment MUST be type written using Times New Roman size 12, 1.5
spacing, justified alignment and 1 inch margin on both side of each page and properly
bound.
3.
The references must quote under HARVARD referencing.

ANSWER ALL QUESTIONS

QUESTION 1
Micro Light Sdn Bhd manufactures a single product. Variable manufacturing overhead is applied
to products on the basis of direct labor hours. The standard costs for one unit of product are as
follows:
$
Direct materials: 6 ounces at $0.50 per ounce
Direct labor: 1.8 hours at $10 per hour
Variable manufacturing overhead: 1.8 hours at $5 per hour
Total standard variable cost per unit

3.00
18.00
9.00
30.00

During June, 2016 nearly 2,000 units were produced. The cost associated with month of June,
2016 operations were as follows:
Material purchased: 18,000 ounces at $0.60 per ounce
Material used in production: 14,000 ounces
Direct labor: 4,000 hours at $9.75 per hour
Variable manufacturing overhead cost incurred

$
10,800.00
39,000.00
20,800.00

Required:
a) Compute the total, price and quantity variances for
i.
material
ii.
labor
(Note: Briefly explain the ways of working and elaborate your understanding on your answers)
(12 marks)
b) Compute the total overhead variance.
(3 marks)

APU Level 3

Asia Pacific University of Technology & Innovation

201608

BM056-3.5-3 MAT

Individual Assignment

Page 2 of 2

c) Standard costs facilitate management planning. What are the other advantages of standard
costs?
(5 marks)
d) What are the four perspectives used in the balanced scorecard? Discuss the nature of each,
and how the perspectives are linked.
(10 marks)
QUESTION 2
Continuous Quality Improvement Issues and Management of Cost Accounting Techniques.
Identify the value added and non-value added activities for an organization, and need to identify
the relevant theory in order to explain the current practice, it should set out the various types of
management accounting techniques used in managing and controlling cost but not at the expense
of providing high quality product and services. The various types of management accounting
techniques are but not limited to Activity-Based Costing (ABC) and Just-In-Time (JIT).
Required:
a. Recommend the alternate management accounting techniques that have been developed to
manage cost and being practiced by the companies.
(10 marks)
b. Evaluate the feasibility of applying strategic management accounting techniques. Your
answers should include a discussion of:i.
features
ii. benefit
iii. constraint & difficulties
(20 marks)
(Total: 60 marks)

APU Level 3

Asia Pacific University of Technology & Innovation

201608