answering assignment homework help

  

Answering Question based on scenario 1 I have to complete the tasks by getting grade P, M1, M3So I want my grade M3can you answering this question without handout, because I only have the question paper.
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Scenario 1
Medical devices are normally associated with use by hospitals and medical practices. Some
devices are used by normal consumers, and are proliferating amongst the general public. The
market for medical devices such as insulin pumps and blood pressure monitors has become more
consumer-driven and is putting pressures on manufacturers to design better products and get
them to the market faster.
Synergy Ltd, a popular name in the market has gained its reputation by bringing in its own
product A an insulin pumps named “Sych” in Oman market. Synergy Ltd has been the only
trader in Oman to import the parts from its partner in China and do the assembling in its
warehouse. It has its own team who are specialised and have undergone training to assemble the
parts. Synergy Ltd has an agreement to bear all the cost of expenses of material and labour
incurred by its partner in China. The partner however bears all the exporting costs.
The new management of Synergy Ltd have second thoughts and have raised concerns over this
partnership deal. They would like the management accountant to analyse on the cost factor in the
third quarter of 2016.
“Sych” has two main components. Synergy Ltd estimates to produce 1000 units of “Sych”
during the third quarter of 2016. Now the Management of Synergy Ltd wants a detailed analysis
of the total cost of making the product, so that it will help the firm to plan and reduce the cost at
the same time enhance the overall profitability.
Estimated data for the forthcoming period is as follows:1.Each unit of “Sych” requires materials as follows-:
 Steel component costing R.O 3.5 each
 Plastic covering costing R.O 1.5 each
2. Each “Sych” requires 2 hours of skilled labour at R.O 5 per hour and 1.5 hours of unskilled
labour at
R.O 3 per hour.
3. Other direct expenses to be incurred per “Sych” are R.O 2.
4. In addition to the above following is the overhead costs; these costs are divided on the basis of
units manufactured.
I.
II.
Synergy Ltd incurs a fixed production cost for factory rent, rates and insurance of
R.O 6000 per quarter.
Synergy Ltd incurs sales department salaries of R.O 3000, advertising expenses of
R.O 2200, office salaries and other office expenses of R.O 3800.
Task 1 – LO1 – Assessment Criteria 1.1 (M1, M3, D3):
Classify different types of cost
To achieve Pass you must

Identify the different types of cost incurred in making “Sych” and record this information
in the unit cost card showing prime cost, production cost and total cost of Synergy Ltd.
In addition to the above Having identified the different types of cost, classify them on
the basis of – Nature and Behavior
To achieve M1, you should make effective judgements in classifying the cost based on cost
behavior, nature and this should be reflected in the preparation of cost sheet.
To achieve M3, you should have used the appropriate structure and approach coherently in
preparing the cost sheet and consider the intended audience who will use the cost sheet.
To achieve D3, you should have arrived at conclusions through synthesis of ideas and justified
your conclusion pertaining to prepared cost card.

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