Ceria Sdn Bhd manufactures furniture for local market. The company has three departments which involved in...
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Ceria Sdn Bhd manufactures furniture for local market. The company has three departments which involved in the production processes and two service departments. The following information relates to the operation of the company for the first quarter of 2021: Overhead cost Total (RM) Production Department Service Department Cutting (RM) Finishing (RM) Packaging Store Maintenance (RM) (RM) (RM) Allocated 38,300 13,400 11,490 9,570 0 3,840 Rent and rates 36,000 Administration 12,000 and personnel expenses Utilities 11,200 Depreciation of 28,000 machine Other information related to the overhead cost is as follows: Cutting Finishing Packaging Store Maintenance Area occupied (sq. feet) 6,400 3,200 3,200 1,600 1,600 Machine value (RM) 76,500 23,500 - - Number of employees 60 30 18 6 6 Maintenance hours 60 45 30 15 - Number of material 50 20 20 10 requisition Direct labour hours 2,500 1,500 3,000 Machine hours 7,000 3,000 The Cutting and Finishing Department use machine hours while Packaging Department uses direct labour hours. The company uses repeated distribution method. Required: a. b. Prepare the overhead analysis sheet which clearly shows the basis of apportionment. (Round up your answer to the nearest RM) Calculate the overhead absorption rate for each of the production department. (State your answers to two decimal places) Ceria Sdn Bhd manufactures furniture for local market. The company has three departments which involved in the production processes and two service departments. The following information relates to the operation of the company for the first quarter of 2021: Overhead cost Total (RM) Production Department Service Department Cutting (RM) Finishing (RM) Packaging Store Maintenance (RM) (RM) (RM) Allocated 38,300 13,400 11,490 9,570 0 3,840 Rent and rates 36,000 Administration 12,000 and personnel expenses Utilities 11,200 Depreciation of 28,000 machine Other information related to the overhead cost is as follows: Cutting Finishing Packaging Store Maintenance Area occupied (sq. feet) 6,400 3,200 3,200 1,600 1,600 Machine value (RM) 76,500 23,500 - - Number of employees 60 30 18 6 6 Maintenance hours 60 45 30 15 - Number of material 50 20 20 10 requisition Direct labour hours 2,500 1,500 3,000 Machine hours 7,000 3,000 The Cutting and Finishing Department use machine hours while Packaging Department uses direct labour hours. The company uses repeated distribution method. Required: a. b. Prepare the overhead analysis sheet which clearly shows the basis of apportionment. (Round up your answer to the nearest RM) Calculate the overhead absorption rate for each of the production department. (State your answers to two decimal places)
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