Question 1 Use the following information for Questions 1 a) and 1 b): a) At the beginning of the year, Juju Sdn. Bhd. estimated the following: Firing Department Polishing Department Total RM RM RM Overhead 405,000 110,000 515,000 Direct labour hours 28,750 100,000 128,750 Kiln hours 90,000 90,000 Refer to the information for Juju Sdn. Bhd. above. Juju uses departmental overhead rates. In the firing department, overhead is applied on the basis of kiln hours (number of hours spent in the gas-fired kiln). In the polishing department, overhead is applied on the basis of direct labor hours. Actual data for the month of June are as follows: Firing Department RM Polishing Department Total RM RM Overhead 34,000 9,370 43,370 Direct labour hours 2,350 8,600 10,950 Kiln hours 7,400 7,400
Question 1 Use the following information for Questions 1 a) and 1 b): a) At the beginning of the year, Juju Sdn. Bhd. estimated the following: Firing Department Polishing Department Total RM RM RM Overhead 405,000 110,000 515,000 Direct labour hours 28,750 100,000 128,750 Kiln hours 90,000 90,000 Refer to the information for Juju Sdn. Bhd. above. Juju uses departmental overhead rates. In the firing department, overhead is applied on the basis of kiln hours (number of hours spent in the gas-fired kiln). In the polishing department, overhead is applied on the basis of direct labor hours. Actual data for the month of June are as follows: Firing Department RM Polishing Department Total RM RM Overhead 34,000 9,370 43,370 Direct labour hours 2,350 8,600 10,950 Kiln hours 7,400 7,400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Question
i) Calculate the predetermined plantwide overhead rate. (Note: Round to the nearest cent.)
ii) Calculate the overhead applied to production for the month of Jun.
iii) Calculate the overhead variance for the month of Jun.
Transcribed Image Text:Question 1
Use the following information for Questions 1 a) and 1 b):
a) At the beginning of the year, Juju Sdn. Bhd. estimated the following:
Firing Department
Total
Polishing Department
RM
RM
RM
Overhead
405,000
515,000
Direct labour hours
28,750
110,000
100,000
0
128,750
Kiln hours
90,000
90,000
Refer to the information for Juju Sdn. Bhd. above. Juju uses departmental overhead rates. In
the firing department, overhead is applied on the basis of kiln hours (number of hours spent in
the gas-fired kiln). In the polishing department, overhead is applied on the basis of direct labor
hours. Actual data for the month of June are as follows:
Firing Department
RM
Polishing Department
RM
Total
RM
Overhead
34,000
9,370
43,370
Direct labour hours
2,350
10,950
8,600
0
Kiln hours
7,400
7,400
U
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