A. Fella Impian Berhad is a manufacturing company, the company is organized into five cost centres....
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A. Fella Impian Berhad is a manufacturing company, the company is organized into five cost centres. Shown below are next year's budgeted operating costs for the company: Direct allocated costs: Production Departments Weaving Proofing Finishing Personnel Engineering (RM) 10.500 3,200 2,100 Service Departments Total (RM) (RM) 3.500 5,200 1,100 (RM) 2,500 1,500 (RM) (RM) Direct Material 16,500 9,900 7.600 Direct Wages Indirect 200 1,600 2,600 Materials and wages Power 4.800 1.200 300 200 700 7.200 Other Overhead costs: Rent and rates Supervision Machine Insurance RM10,000 RM12,000 RM3,600 Additional information extracted from next year's budget is shown as below: Weaving Proofing Finishing Personnel Engineering 12,000 Total Floor area 27,000 6,000 12,000 3,000 60,000 (Square meters) Machine hours Direct labour hours 150,000 120,000 50,000 180,000 50,000 60,000 250,000 360,000 Number of 60 90 45 10 45 250 employees Book value of 300,000 100,000 100,000 500,000 machinery (RM) Required: a. Prepare an overhead analysis sheet for Fella Impian Berhad indirect method. You can assume that the engineering service department does not provide services for the personnel department. (13 marks) b. Calculate the overhead absorption rate for each if the allocation basis is direct labour hours for weaving and proofing department and machine hour for finishing department. (6 marks) A. Fella Impian Berhad is a manufacturing company, the company is organized into five cost centres. Shown below are next year's budgeted operating costs for the company: Direct allocated costs: Production Departments Weaving Proofing Finishing Personnel Engineering (RM) 10.500 3,200 2,100 Service Departments Total (RM) (RM) 3.500 5,200 1,100 (RM) 2,500 1,500 (RM) (RM) Direct Material 16,500 9,900 7.600 Direct Wages Indirect 200 1,600 2,600 Materials and wages Power 4.800 1.200 300 200 700 7.200 Other Overhead costs: Rent and rates Supervision Machine Insurance RM10,000 RM12,000 RM3,600 Additional information extracted from next year's budget is shown as below: Weaving Proofing Finishing Personnel Engineering 12,000 Total Floor area 27,000 6,000 12,000 3,000 60,000 (Square meters) Machine hours Direct labour hours 150,000 120,000 50,000 180,000 50,000 60,000 250,000 360,000 Number of 60 90 45 10 45 250 employees Book value of 300,000 100,000 100,000 500,000 machinery (RM) Required: a. Prepare an overhead analysis sheet for Fella Impian Berhad indirect method. You can assume that the engineering service department does not provide services for the personnel department. (13 marks) b. Calculate the overhead absorption rate for each if the allocation basis is direct labour hours for weaving and proofing department and machine hour for finishing department. (6 marks)
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a i Primary distribution of overheads Overhead Analysis Primary Distribution Allocated to Overhead cost Cost Amount RM Allocation Base Allocation rate ... View the full answer
Related Book For
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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