ZC Phone Manufacturing is a company that manufactures and sells ZC mobile phone. Tl company has three (3) production departments; Department A, Department B and Departmer C. Department A and Department C are labour oriented, while Department B is 95% machit oriented. ZC Phone Manufacturing also has two (2) service departments, namely Maintenane and Store. The company forecasts the following costs for the year ended March 2018. Dept A RM 5,500 Dept B RM 2,000 75,000 Dept C RM 4,000 Cost element Total RM 15,000 350,000 Maintenance RM 2,200 65,000 Stor RM 1,30 Direct labour Indirect material Indirect labour Other overhead cost Rent & rates Depreciation of 120,000 plant & Machinery Power 85,000 68,000 57,00 20,000 7,500 75,000 3,000 60,000 6,000 60,000 2,000 1,50 25,00 250,000 30,000 35,000 20,000 Additional information: Dept A 60 155,000 55 500 20% 25,000 80,000 20% Dept B 35 280,000 20 2,000 40% 75,000 35,000 60% Dept C 30 100,000 60 500 20% 35,000 85,000 20% Store 20 119,00 10 150 10% Maintenance 15 100,000 Floor area (sq metre) Value of machinery (RM) Number of employees Maintenance Hours Material handling (%) Machine hours Direct labour hours Horse power (%) 50 10%

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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ZC Phone Manufacturing is a company that manufactures and sells ZC mobile phone. The
company has three (3) production departments; Department A, Department B and Department
C. Department A and Department C are labour oriented, while Department B is 95% machine
oriented. ZC Phone Manufacturing also has two (2) service departments, namely Maintenance
and Store. The company forecasts the following costs for the year ended March 2018.
Dept B
RM
2,000
75,000
Cost element
Total
RM
15,000
350,000
Dept A
RM
5,500
85,000
Dept C
RM
4,000
Maintenance
RM
2,200
65,000
Store
RM
1,300
Direct labour
Indirect
material
Indirect labour
Other
68,000
57,000
20,000
7,500
75,000
3,000
60,000
2,000
30,000
6,000
1,500
250,000
60,000
25,000
overhead cost
Rent & rates
Depreciation of 120,000
plant &
Machinery
Power
35,000
20,000
Additional information:
Dept A
60
155,000
55
500
20%
25,000
80,000
20%
Dept B
35
280,000
20
2,000
40%
75,000
35,000
60%
Dept C
30
100,000
60
500
20%
35,000
85,000
20%
Store
20
119,000
10
150
10%
Maintenance
15
100,000
Floor area (sq metre)
Value of machinery (RM)
Number of employees
Maintenance Hours
Material handling (%)
Machine hours
Direct labour hours
Horse power (%)
50
10%
Required:
a)
Prepare an overhead analysis sheet showing the basis for apportionment made. Use
Repeated Distribution Method for Reapportionment. (Answers are to be stated to the
nearest RM).
Transcribed Image Text:ZC Phone Manufacturing is a company that manufactures and sells ZC mobile phone. The company has three (3) production departments; Department A, Department B and Department C. Department A and Department C are labour oriented, while Department B is 95% machine oriented. ZC Phone Manufacturing also has two (2) service departments, namely Maintenance and Store. The company forecasts the following costs for the year ended March 2018. Dept B RM 2,000 75,000 Cost element Total RM 15,000 350,000 Dept A RM 5,500 85,000 Dept C RM 4,000 Maintenance RM 2,200 65,000 Store RM 1,300 Direct labour Indirect material Indirect labour Other 68,000 57,000 20,000 7,500 75,000 3,000 60,000 2,000 30,000 6,000 1,500 250,000 60,000 25,000 overhead cost Rent & rates Depreciation of 120,000 plant & Machinery Power 35,000 20,000 Additional information: Dept A 60 155,000 55 500 20% 25,000 80,000 20% Dept B 35 280,000 20 2,000 40% 75,000 35,000 60% Dept C 30 100,000 60 500 20% 35,000 85,000 20% Store 20 119,000 10 150 10% Maintenance 15 100,000 Floor area (sq metre) Value of machinery (RM) Number of employees Maintenance Hours Material handling (%) Machine hours Direct labour hours Horse power (%) 50 10% Required: a) Prepare an overhead analysis sheet showing the basis for apportionment made. Use Repeated Distribution Method for Reapportionment. (Answers are to be stated to the nearest RM).
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