Magnificent Sdn Bhd is a manufacturing company producing slime. It has two productiondepartments; Mixing and Packing and two service departments; Store and Maintenance.Mixing department is more machine oriented and Packing is more labour oriented.The following information relates to the operation on the month of May 2020:MixingRM189,500PackingRM90.500Actual total production overheadsBudgeted total production overheads RM178,500Actual machine hoursRM94,5005,0501,010Budgeted machine hours5,1001,100Actual direct labour hours1,3803,460Budgeted direct labour hours1,4003,500 5)Determine the over or under absorption of overhead for Mixing department. Show yourdetailed calculations for the answer.RM24,000 (Under)RM13,870 (Under)RM11,842 (Under)RM12.750 (Under)ABCD

Manufacturing overhead means the expense incurred in factory which is not directly linked with…

5) Determine the over or under absorption of overhead for Mixing department. Show your detailed calculations for the answer. RM24,000 (Under) RM13,870 (Under) RM11,842 (Under) RM12.750 (Under) ABCD C. D.

5) Determine the over or under absorption of overhead for Mixing department. Show your detailed calculations for the answer. RM24,000 (Under) RM13,870 (Under) RM11,842 (Under) RM12.750 (Under) ABCD C. D.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

Magnificent Sdn Bhd is a manufacturing company producing slime. It has two production
departments; Mixing and Packing and two service departments; Store and Maintenance.
Mixing department is more machine oriented and Packing is more labour oriented.
The following information relates to the operation on the month of May 2020:
Mixing
RM189,500
Packing
RM90.500
Actual total production overheads
Budgeted total production overheads RM178,500
Actual machine hours
RM94,500
5,050
1,010
Budgeted machine hours
5,100
1,100
Actual direct labour hours
1,380
3,460
Budgeted direct labour hours
1,400
3,500

5)
Determine the over or under absorption of overhead for Mixing department. Show your
detailed calculations for the answer.
RM24,000 (Under)
RM13,870 (Under)
RM11,842 (Under)
RM12.750 (Under)
ABCD

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