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 Bhd's 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: Department A Department B Floor area (square meters) 8,000 11,000 Number of employees 56 53 You are required to calculate the apportionment of overhead cost of depreciation of buildings based on floor area for: i) Department A (4 marks) ii) Department B (4 marks)