QUESTION 1 (10 MARKS)

A. Common overheads which cannot be allocated directly to the specific departments need to be apportioned equitably on some suitable basis.

List down TWO (2) basis of the apportionment of overheads. (2 marks)

B. The following information is extracted from Jatrax Sdn Bhds records;

RM Depreciation of buildings 45,000 Store Rental 30,000 Value of buildings 450,000 Jatrax has two (2) production departments, Department A and Department B. The following related information is also provided by Jatrax: Floor area (square meters) Number of employees Department A 8,000 56 Department B 11,000 53 You are required to calculate the apportionment of overhead cost of depreciation of buildings based on floor area for: i) Department A ii) Department B (4 marks) (4 marks)