Giant Mountain Sdn. Bhd. produces high quality mountain bikes for the local as well as international...
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Giant Mountain Sdn. Bhd. produces high quality mountain bikes for the local as well as international market. The manufacturing process of the bikes involves three production departments; Machining, Assembly and Testing Department. Assembly department is machine oriented while the other two production departments are labour intensive. Store is a service department which is responsible in managing and issuing materials requested by the three production departments. The budgeted production overhead costs for 2023 are as follows: Overhead costs $ Indirect expenses: Machining Assembly Testing Store Supervision Rent and rates Electricity (lighting) Electricity (power) Insurance on machinery Depreciation on machinery Additional information: Particulars Direct labour hours Machine hours Maintenance hours No. of material requisition No. of employees Floor area Horse power Machine value ($) Machining 20,000 25,000 18,000 7,000 25,000 24,000 1,800 4,800 15,000 55,000 20,000 1,500 35 53 20 2,100 3,600 250,000 (1) Prepare OH analysis sheet (round up to the nearest $). (2) Calculate OAR for each department. Assembly 3,500 7,000 30 25 25 2,100 2,600 50,000 Testing 25,000 1,000 20 17 40 2,600 1,350 180,000 Store 15 - 5 700 650 20,000 Total 48,500 9,500 100 95 90 7,500 8,200 500,000 Giant Mountain Sdn. Bhd. produces high quality mountain bikes for the local as well as international market. The manufacturing process of the bikes involves three production departments; Machining, Assembly and Testing Department. Assembly department is machine oriented while the other two production departments are labour intensive. Store is a service department which is responsible in managing and issuing materials requested by the three production departments. The budgeted production overhead costs for 2023 are as follows: Overhead costs $ Indirect expenses: Machining Assembly Testing Store Supervision Rent and rates Electricity (lighting) Electricity (power) Insurance on machinery Depreciation on machinery Additional information: Particulars Direct labour hours Machine hours Maintenance hours No. of material requisition No. of employees Floor area Horse power Machine value ($) Machining 20,000 25,000 18,000 7,000 25,000 24,000 1,800 4,800 15,000 55,000 20,000 1,500 35 53 20 2,100 3,600 250,000 (1) Prepare OH analysis sheet (round up to the nearest $). (2) Calculate OAR for each department. Assembly 3,500 7,000 30 25 25 2,100 2,600 50,000 Testing 25,000 1,000 20 17 40 2,600 1,350 180,000 Store 15 - 5 700 650 20,000 Total 48,500 9,500 100 95 90 7,500 8,200 500,000
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Heres the OH analysis sheet rounded up to the nearest and OAR for each department Depa... View the full answer
Related Book For
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey
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