Good Yeast (M) Sdn. Bhd. produces a premium-grade yeast to be used in baking industry i Malaysia. The company operates three production departments: Strain banks, Incubators, Packin and two service departments: store and maintenance. The following are the data extracted from company's records: Factory Overheads Indirect labour Departments Strain bank Incubator Packing RM 11,000 12,900 9,600

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question

Please answer correct with good presentation

 

Question 3
Good Yeast (M) Sdn. Bhd. produces a premium-grade yeast to be used in baking industry in
Malaysia. The company operates three production departments: Strain banks, Incubators, Packing
and two service departments: store and maintenance. The following are the data extracted from
company's records:
Factory Overheads
Indirect labour
Departments
Strain bank
Incubator
RM
11,000
12,900
Packing
9,600
12,600
11,400
10,200
Store
Maintenance
Heating
Supervision
Production supervision
Power
Depreciation of machine
65,300
55,100
30,500
15,900
Lubricant
10,200
Direct materials
Direct labour
34,500
20,800
Additional information:
Item
Floor Area (Sq. ft.)
No. of employees
Machine value (RM000)
Power (Kilowatts)
Strain bank
Maintenance
Incubator
4,500
Packing
2,600
Store
2,100
4,200
1600
16
24
35
10
15
100
10,000
200
150
50
2,000
4,000
3,500
4,000
1,500
Maintenance hours
5,000
Materials requisitions
6,000
3,000
14,500
26,000
1,000
Direct labour hours
20,000
14,000
5,500
Machine hours
10,000
Required:
Prepare an overhead analysis statement for the year ended 31 December 2021.
(Round up your answers to the nearest whole number).
(a)
Calculate the overhead absorption rate (to the nearest 2 decimal points) for the production
departments.
(b)
Note:
No mark will be rewarded if there is no working shown in each of your calculations.
Transcribed Image Text:Question 3 Good Yeast (M) Sdn. Bhd. produces a premium-grade yeast to be used in baking industry in Malaysia. The company operates three production departments: Strain banks, Incubators, Packing and two service departments: store and maintenance. The following are the data extracted from company's records: Factory Overheads Indirect labour Departments Strain bank Incubator RM 11,000 12,900 Packing 9,600 12,600 11,400 10,200 Store Maintenance Heating Supervision Production supervision Power Depreciation of machine 65,300 55,100 30,500 15,900 Lubricant 10,200 Direct materials Direct labour 34,500 20,800 Additional information: Item Floor Area (Sq. ft.) No. of employees Machine value (RM000) Power (Kilowatts) Strain bank Maintenance Incubator 4,500 Packing 2,600 Store 2,100 4,200 1600 16 24 35 10 15 100 10,000 200 150 50 2,000 4,000 3,500 4,000 1,500 Maintenance hours 5,000 Materials requisitions 6,000 3,000 14,500 26,000 1,000 Direct labour hours 20,000 14,000 5,500 Machine hours 10,000 Required: Prepare an overhead analysis statement for the year ended 31 December 2021. (Round up your answers to the nearest whole number). (a) Calculate the overhead absorption rate (to the nearest 2 decimal points) for the production departments. (b) Note: No mark will be rewarded if there is no working shown in each of your calculations.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education