Question 3 Kerisi Sdn Bhd manufactures tents and sleeping bags in two separate production departments. The manufacturing processes involve two departments: Cutting and Sewing Departments. The company uses predetermined overhead to calculate manufacturing overhead. The Cutting Department is machine oriented while the Sewing Department is labour oriented. The following is the information for the year ended 31 December 2021. Cutting Department Sewing Department Estimated machine hours 105,000 29,000 Estimated direct labour hours 90,000 27,000 Estimated manufacturing overhead RM 651,000 RM 540,000 Actual manufacturing overhead RM 600,000 RM 560,000 Actual machine hours 100,000 27,000 Actual direct labour hour 96,300 26,600 Required: (a)Calculate the predetermined overhead rate for each department. . (b)Calculate over/under applied manufacturing overhead for each department.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question 3 Kerisi Sdn Bhd manufactures tents and sleeping bags in two separate production departments. The manufacturing processes involve two departments: Cutting and Sewing Departments. The company uses predetermined overhead to calculate manufacturing overhead. The Cutting Department is machine oriented while the Sewing Department is labour oriented. The following is the information for the year ended 31 December 2021. Cutting Department Sewing Department Estimated machine hours 105,000 29,000 Estimated direct labour hours 90,000 27,000 Estimated manufacturing overhead RM 651,000 RM 540,000 Actual manufacturing overhead RM 600,000 RM 560,000 Actual machine hours 100,000 27,000 Actual direct labour hour 96,300 26,600 Required: (a)Calculate the predetermined overhead rate for each department. . (b)Calculate over/under applied manufacturing overhead for each department.
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