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10 A production company produces a high grade of chemical product which has to go through three production departments namely, Melting, Boiling and Mixing. Besides production department there are two service departments which are Stores and Laboratory. Melting and Mixing departments used high technology machineries whereas Boiling department is labour oriented, The estimated overhead costs for January 2014 are as follows: Power: RM24,000, Rent RM30,000 Light and air-conditioning: RM6,000; Insurance for mixing machine: RM3,000: and Depreciation on mixing machine: RM78,000 Other indirect cost for each department Melting: RM26,000; Bolling: RM51,000; Mixing: RM52,000; Stores: RM12,900; Laboratory: RM17.100 Additional information: Departments Melting Bolling Mixing Stores Laboratory Power 40 40 10 consumption (kwh) Floor area 4,000 2.000 6,000 1,000 2,000 (sq feet) Cost of mixing 90,000 80,000 110,000 10,000 10,000 machine (RM) Direct labour hours 21,000 83,000 30,000 Mixing hours 33,200 40,000 50,600 No of material 50 30 20 20 requisition Laboratory hours 20 30 Required: a. Prepare an overhead analysis sheet for January 2014 (All calculation to be rounded to the nearest RM) (16 marks) b. Indicate the most appropriate Overhead Absorption Rate (OAR) for each department. (All calculation to be rounded to two decimals places) (2 marks) Differentiate between allocation and apportionment of overhead. (4 marks) 50 C