Question: QUESTION 1 Earmax Bhd. is a company that involves in a business of manufacturing speaker for home theater company. The company has three production centres

 QUESTION 1 Earmax Bhd. is a company that involves in a

business of manufacturing speaker for home theater company. The company has three

QUESTION 1 Earmax Bhd. is a company that involves in a business of manufacturing speaker for home theater company. The company has three production centres namely Assembly, Machining and Finishing Department and two service centres namely Canteen and Store. The basis use for Assembly and Machining Department is machine hours and for Finishing Department, the basis use is direct labour hours. The budgeted overhead for the year ended 30n June 2022 is as follow: Additional information related to the allocation of overhead is as follows: Required: (a) Prepare an overhead analysis sheet (OAS) showing the cost allocation, apportionment, and re-apportionment of overhead for the five departments using the repeated distribution method. (18 marks) (b) Calculate the Overhead absorption rate (OAR) for each production centre. (6 marks)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!