Chicken Frankfurters (M) Sdn. Bhd. manufactures hot dog for its customers in Malaysia. The company operates...
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Chicken Frankfurters (M) Sdn. Bhd. manufactures hot dog for its customers in Malaysia. The company operates three production departments: Grinding, Stuffing, Packing and two service departments: store and maintenance. The following are the data extracted from company's records: Factory Overheads Indirect labour Canteen Supervision Production supervision Power Heating Depreciation of pant Lubricant Direct materials Direct labour Additional information: Item Floor Area (Sq. m.) No. of employees Plant value ('000) Power (Kilowatts) Maintenance hours Materials requisitions Direct labour hours Machine hours Departments Grinding Stuffing Packing Store Maintenance Grinding 1,500 12 RM400 6,000 380 1,400 2,400 32,500 RM 18,600 14,100 25,300 15,600 12,200 18,100 25,400 38,000 12,000 15,800 12,500 13,300 32,100 49,200 Stuffing 1,600 16 RM300 4,800 220 400 25,000 8,400 Packing 1,400 20 RM250 4,500 400 200 28,600 6,100 Store 2,500 24 RM150 400 Maintenance 1000 RM100 300 Additional information: Because of labour shortage during MCO periods, the workers working at the production-line spent total 10% of their times to help cleaning (sanitizing) all the 5 departments. The times were spent evenly among all 5 departments. (a) ACC1113/ Page 2 of 7 (b) The power sub-station nearby has been frequently experiencing malfunction since the beginning of MCO; it has seriously disrupted the supply of electricity in the region. The problem has increased the power consumption by 40% (extra power generators utilized), and damaged some major parts installed in the machines. The total costs of spare-part replacement carried out in the Specific Maintenance are as follows: (i) Grinding Department: RM21,000 (ii) Stuffing Department: RM22,500 (iii) Packing Department: RM6,040 (c) Due to the managers of Grinding, Stuffing and Packing have either resigned abruptly and deceased (because of severe COVID 19 infection), 50% of production supervisors' role is related to managerial tasks of each department. (d) The factory will clean thoroughly the floor of all 5 departments after production daily; the total cleaning cost amounted to RM13,000. Required: (a) Prepare an Overhead Cost Analysis sheet before the costs of the service departments have been re-apportioned to each production departments. (Round up your answers to the nearest whole number). Note: (i) (ii) You only need to complete allocation and apportionment. No re-apportionment is required. No mark will be rewarded if there is no working shown in each of your calculations. (Total: 25 marks) Chicken Frankfurters (M) Sdn. Bhd. manufactures hot dog for its customers in Malaysia. The company operates three production departments: Grinding, Stuffing, Packing and two service departments: store and maintenance. The following are the data extracted from company's records: Factory Overheads Indirect labour Canteen Supervision Production supervision Power Heating Depreciation of pant Lubricant Direct materials Direct labour Additional information: Item Floor Area (Sq. m.) No. of employees Plant value ('000) Power (Kilowatts) Maintenance hours Materials requisitions Direct labour hours Machine hours Departments Grinding Stuffing Packing Store Maintenance Grinding 1,500 12 RM400 6,000 380 1,400 2,400 32,500 RM 18,600 14,100 25,300 15,600 12,200 18,100 25,400 38,000 12,000 15,800 12,500 13,300 32,100 49,200 Stuffing 1,600 16 RM300 4,800 220 400 25,000 8,400 Packing 1,400 20 RM250 4,500 400 200 28,600 6,100 Store 2,500 24 RM150 400 Maintenance 1000 RM100 300 Additional information: Because of labour shortage during MCO periods, the workers working at the production-line spent total 10% of their times to help cleaning (sanitizing) all the 5 departments. The times were spent evenly among all 5 departments. (a) ACC1113/ Page 2 of 7 (b) The power sub-station nearby has been frequently experiencing malfunction since the beginning of MCO; it has seriously disrupted the supply of electricity in the region. The problem has increased the power consumption by 40% (extra power generators utilized), and damaged some major parts installed in the machines. The total costs of spare-part replacement carried out in the Specific Maintenance are as follows: (i) Grinding Department: RM21,000 (ii) Stuffing Department: RM22,500 (iii) Packing Department: RM6,040 (c) Due to the managers of Grinding, Stuffing and Packing have either resigned abruptly and deceased (because of severe COVID 19 infection), 50% of production supervisors' role is related to managerial tasks of each department. (d) The factory will clean thoroughly the floor of all 5 departments after production daily; the total cleaning cost amounted to RM13,000. Required: (a) Prepare an Overhead Cost Analysis sheet before the costs of the service departments have been re-apportioned to each production departments. (Round up your answers to the nearest whole number). Note: (i) (ii) You only need to complete allocation and apportionment. No re-apportionment is required. No mark will be rewarded if there is no working shown in each of your calculations. (Total: 25 marks)
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Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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