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
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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
Transcribed Image Text: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
Transcribed Image Text: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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