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Question 3 Gajah Sdn Bhd makes two products (Alpha and Beta) that require direct materials, direct labour and overhead. The operations for next month are: Alpha RM 100,000 30,000 40,000 Beta RM 300,000 60,000 95,000 Total RM 400,000 90,000 135,000 Revenue Direct material Direct labour Overhead: Direct material related Direct labour related 13,500 40,500 Required : a) Gajah uses a two-stage cost allocation system. It uses direct material costs to allocate direct materials related overhead and direct labour costs to allocate direct labour related overhead costs: i. Calculate the direct material related overhead rate for next month. Calculate the direct labour related overhead rate for next month ii. ii. What is the total overhead allocated to product Alpha next month? iv. What is the total overhead allocated to product Beta next month?

Question 3 Gajah Sdn Bhd makes two products (Alpha and Beta) that require direct materials, direct labour and overhead. The operations for next month are: Alpha RM 100,000 30,000 40,000 Beta RM 300,000 60,000 95,000 Total RM 400,000 90,000 135,000 Revenue Direct material Direct labour Overhead: Direct material related Direct labour related 13,500 40,500 Required : a) Gajah uses a two-stage cost allocation system. It uses direct material costs to allocate direct materials related overhead and direct labour costs to allocate direct labour related overhead costs: i. Calculate the direct material related overhead rate for next month. Calculate the direct labour related overhead rate for next month ii. ii. What is the total overhead allocated to product Alpha next month? iv. What is the total overhead allocated to product Beta next month?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question 3 Gajah Sdn Bhd makes two products (Alpha and Beta) that require direct materials, direct labour and overhead. The operations for next month are: Alpha RM Beta Revenue Direct material Direct labour Overhead: Direct material related Direct labour related RM 300,000 60,000 95,000 Total RM 400,000 90,000 135,000 100,000 30,000 40,000 13,500 40,500 Required : a) Gajah uses a two-stage cost allocation system. It uses direct material costs to allocate direct materials related overhead and direct labour costs to allocate direct labour related overhead costs: i. Calculate the direct material related overhead rate for next month. ii. Calculate the direct labour related overhead rate for next month iii. What is the total overhead allocated to product Alpha next month? iv. What is the total overhead allocated to product Beta next month?
Transcribed Image Text:Question 3 Gajah Sdn Bhd makes two products (Alpha and Beta) that require direct materials, direct labour and overhead. The operations for next month are: Alpha RM Beta Revenue Direct material Direct labour Overhead: Direct material related Direct labour related RM 300,000 60,000 95,000 Total RM 400,000 90,000 135,000 100,000 30,000 40,000 13,500 40,500 Required : a) Gajah uses a two-stage cost allocation system. It uses direct material costs to allocate direct materials related overhead and direct labour costs to allocate direct labour related overhead costs: i. Calculate the direct material related overhead rate for next month. ii. Calculate the direct labour related overhead rate for next month iii. What is the total overhead allocated to product Alpha next month? iv. What is the total overhead allocated to product Beta next month?
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