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Prima Sdn Bhd manufactures calculators that sell for RM40 each. Each calculator uses RM15 in direct materials and RM5 in direct labor per unit. Prima Sdn Bhd has two activities: Machining, which is applied at the rate of RM4 per machine hour, and Finishing, which is applied at the rate of RM20 per batch.
Problem 1: This month, Prima Sdn Bhd made 400 calculators, using 1,000 machine hours in 40 batches. Calculate the total manufacturing cost for one calculator.
a. RM20
b. RM25
c. RM27
d. RM32
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