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).
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).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
RM
Cutting
Fixing
Finishing
Cutting
Fixing
Finishing
Cutting
Fixing
Finishing
Maintenance
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
Direct material cost
Other direct cost
Allocated overhead costs:
Canteen
Other overhead costs:
Power
Depreciation on machines
Production supervisor's salaries
Insurance of building
Heat&Light
The following information relates to the above cost centres:
Cost centres
Cutting
100
Fixing
80
Finishing
40
Maintenance Canteen
40
Power consumption
(kilowatt hours)
Maintenance service
30
28,000
20,000
9,000
400
hours
Machine Hours
Direct labour hours
Direct labour rate per
hour
22,000
10,000
11,000
18,000
9,000
12,000
RM4
RM8
RM5
Floor area (square
meter)
Book value of machine
No. of employee
4,000
3,500
1,000
500
1,000
RM100,000 RM180,000 RM280,000
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).
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