Tung Engineering has three products (T1, T2 & T3) and two services departments (Stores and Maintenance)...

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Tung Engineering has three products (T1, T2 & T3) and two services departments (Stores and Maintenance) within its factory at Bintulu, Malaysia. Its budgeted overhead cost for the year 2020 were allocated to the five departments were as follows: T2 60,000 Allocated OH ($) Floor space (sqm) Machine value ($) Numbers of employees Uses of stores department Uses of maintenance department The following budgeted costs have yet to be apportioned to the five departments: Rent $60,000 Supervision $120,000 $75,000 Depreciation of Machine In addition, the following information relating to the five departments is available: T1 T3 Stores 800 1,000 50,000 8,000 15 2 20% 15% Actual overhead incurred ($) (allocated & apportioned) Actual machine hours Required: (a) T1 75,000 (b) (c) (d) 1,500 140,000 22 40% 35% T3 48,000 Budgeted machine hours for the period were 200,000 for Department T1, 125,000 for Department T2 and 100,000 for Department T3. Actual results for this year were: T1 T2 160,000 210,000 T2 1,200 90,000 17 30% 30% Stores 29,000 175,000 125,000 4 T3 130,000 20% 98,000 Maintenance 17,500 Maintenance 500 12,000 4 10% Produce a budgeted overhead distribution table, for the period of 2020, showing the allocated and apportioned costs for the five departments. Re-apportion the budgeted Service Department costs to Production Departments using simultaneous equations. Calculate a pre-determined overhead absorption rate per machine hour for each of the Production Departments. Calculate the over/under absorbed overhead for each of the production departments for the period. 4/5 Tung Engineering has three products (T1, T2 & T3) and two services departments (Stores and Maintenance) within its factory at Bintulu, Malaysia. Its budgeted overhead cost for the year 2020 were allocated to the five departments were as follows: T2 60,000 Allocated OH ($) Floor space (sqm) Machine value ($) Numbers of employees Uses of stores department Uses of maintenance department The following budgeted costs have yet to be apportioned to the five departments: Rent $60,000 Supervision $120,000 $75,000 Depreciation of Machine In addition, the following information relating to the five departments is available: T1 T3 Stores 800 1,000 50,000 8,000 15 2 20% 15% Actual overhead incurred ($) (allocated & apportioned) Actual machine hours Required: (a) T1 75,000 (b) (c) (d) 1,500 140,000 22 40% 35% T3 48,000 Budgeted machine hours for the period were 200,000 for Department T1, 125,000 for Department T2 and 100,000 for Department T3. Actual results for this year were: T1 T2 160,000 210,000 T2 1,200 90,000 17 30% 30% Stores 29,000 175,000 125,000 4 T3 130,000 20% 98,000 Maintenance 17,500 Maintenance 500 12,000 4 10% Produce a budgeted overhead distribution table, for the period of 2020, showing the allocated and apportioned costs for the five departments. Re-apportion the budgeted Service Department costs to Production Departments using simultaneous equations. Calculate a pre-determined overhead absorption rate per machine hour for each of the Production Departments. Calculate the over/under absorbed overhead for each of the production departments for the period. 4/5

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Budgeted Overhead Distribution Table for Tung Engineering in 2020 Department Allocated OH Rent Supervision Depreciation of Machine Total Budgeted Cost... View the full answer