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(25 marks) QUESTION 3 Telekong City Bhd (TCB) has organized a new division to manufacture and sell me Muslimah (ladies) praying attire called as 'telekong'. The division's monthly costs are as below: Manufacturing cost: Variable cost per unit Direct material Variable manufacturing overhead Fixed manufacturing overhead costs RM76.80 RM 3.20 RM576,000 Selling and administrative cost Variable Fixed (total) 12% on sales RM752,000 TCB regards all of its workers as full-time employees and the company has a long-standing no lay-off policy. Furthermore, production is highly automated. Accordingly, the company includes its labor costs in its fixed manufacturing overhead. The 'telekong' is sold at RM320 each. During April, the number of unit produced was 24,000 units, and the number of unit sold was 20,000 units. Required: a) Compute the unit product cost using: i. Absorption costing. ii. Variable costing (6 marks) (CLO3:PLO2:C3) b) Prepare the absorption income statement for April. (4 marks) (CLO3:PLO2:03) c) Prepare the contribution income statement using variable costing. (4 marks) (CL03:PLO2:03) operations. d) Assuming the company need additio Discuss which income statement above to investors. the company need additional financing in order to continue operatie income statement above to be presented when meeting the pote (4 marks) (CLO3:PLO2:04) Reconcile the absorption costing and variable costing net operating incomes in (c) and (d) above. (4 marks) (CLO3:PLO2:04) f) Discuss why companies assigned fixed costs to production on per cost unit basis. (3 marks) (CLO3:PLO2:04)

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