Chin plywood Sdn Bhd operates with three (3) production cost centres: Cutting, Fixing and Finishing; and two (2) service cost centres, Maintenance and Canteen. The following information relates to the company for year 2017: |Cost element Direct material cost Cutting Fixing Finishing Cutting Fixing Finishing Cutting Fixing Finishing Maintenance Canteen Power Depreciation on machines Production supervisor's salaries Insurance of building Heat & Light RM 250,000 158,000 700,000 35,000 29,000 6,000 250,000 159,000 89,000 75,000 58,000 40,000 106,000 18,000 95,000 65,000 Other direct cost Allocated overhead costs : Other overhead costs: The following information relates to the above cost centres: Cost centres |Finishing 40 Cutting 100 Fixing Maintenance Canteen 40 Power consumption (kilowatt hours) Maintenance service hours Machine Hours Direct labour hours Direct labour rate per 80 30 28,000 20,000 9,000 400 22,000 10,000 RM4 11,000 18,000 RM8 9,000 12,000 RM5 hour Floor area (square meter) Book value of machine RM100,000 RM180,000 RM280,000 No. of employee 4,000 3,500 1,000 500 1,000 66 35 20 10 Required: a) Prepare the overhead analysis sheet to allocate, apportion and reapportion the overhead costs to each production department. Show your answer to the nearest Ringgit Malaysia (RM). Calculate the departmental overhead absorption rates (OAR) based on the following basis: b) Cutting - Machine hours - Direct labour hours Finishing - Direct labour hours
Chin plywood Sdn Bhd operates with three (3) production cost centres: Cutting, Fixing and Finishing; and two (2) service cost centres, Maintenance and Canteen. The following information relates to the company for year 2017: |Cost element Direct material cost Cutting Fixing Finishing Cutting Fixing Finishing Cutting Fixing Finishing Maintenance Canteen Power Depreciation on machines Production supervisor's salaries Insurance of building Heat & Light RM 250,000 158,000 700,000 35,000 29,000 6,000 250,000 159,000 89,000 75,000 58,000 40,000 106,000 18,000 95,000 65,000 Other direct cost Allocated overhead costs : Other overhead costs: The following information relates to the above cost centres: Cost centres |Finishing 40 Cutting 100 Fixing Maintenance Canteen 40 Power consumption (kilowatt hours) Maintenance service hours Machine Hours Direct labour hours Direct labour rate per 80 30 28,000 20,000 9,000 400 22,000 10,000 RM4 11,000 18,000 RM8 9,000 12,000 RM5 hour Floor area (square meter) Book value of machine RM100,000 RM180,000 RM280,000 No. of employee 4,000 3,500 1,000 500 1,000 66 35 20 10 Required: a) Prepare the overhead analysis sheet to allocate, apportion and reapportion the overhead costs to each production department. Show your answer to the nearest Ringgit Malaysia (RM). Calculate the departmental overhead absorption rates (OAR) based on the following basis: b) Cutting - Machine hours - Direct labour hours Finishing - Direct labour hours
Chapter1: Financial Statements And Business Decisions
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