Page 176 - Module DMV20173
P. 176
EXERCISE 10.3
The ANW Company produces metal plates and fasteners. Lists below showed their
costs of business.
Type Amount (RM)
Building rent 10,000 / month
Machineries 100,000
Raw Materials - steel 5000 / month
Raw Materials - copper 5000 / month
Raw Materials - aluminum 5000 / month
Raw Materials - copper 5000 / month
Salary of administration staff 20,000 / month
Management expenses 5000 / month
Salary of technical staff 15,000 / month
Water bill 1000 / month
Telephone bill 1000 / month
From the information given, find:
a) Labour cost.
b) Materials cost.
c) Overhead cost.
d) Manufacturing cost.
e) Overall cost.
Solution:
a) Labour cost = Salary of administration staff + Salary of technical staff
= 20000 + 15000 = RM 35,000.
b) Materials cost = Raw Materials (steel) + Raw Materials (copper) + Raw
Materials(Aluminum) + Raw Materials (copper)
= 5000 + 5000 + 5000 + 5000 = RM 20,000
