2 Questions: (Q1 & Q3)

Question 3 Chandra Sdn. Bhd. manufactures and sells furnitures. There are 3 production departments, Sawing (P1), Assembly (P2) and Painting (P3). There are two service departments supporting the production centres which are Maintenance and Store room. The allocated overheads for the month of February 2020 are as follows: Departments P1 P2 P3 Maintenance Store room (RM) (RM) (RM) (RM) (RM) Indirect materials 15,000 0 3,500 7,100 5,100 Apportionable overheads are as follows: RM Insurance for building 50,000 Salaries for security guards 35,000 Depreciation for plant 38,000 Light and heat 17,500 Rent 12,000The company has furnished the following figures to facilitate apportionment: Department P1 P2 P3 Maintenance Store room Floor areas (sq.fts) 4,292.50 2,835 945 472.50 945 Book values of plant 65,000 50,000 10,000 0 0 Maintenance hour(s) 292 219 219 0 O Value of raw materials 62,000 46,000 31,100 15,200 0 issued Machine hour(s) 70,000 56,000 6,000 O O Labour hour (s) 10,500 3,800 25,000 O O Required: (a) Calculate the departmental overheads absorption rate for Chandra Sdn. Bhd. Show clearly your workings. (2 decimals required for all the workings and answers). (21 marks) (b ) Define the terms of 'blanket overheads absorption rate' and 'departmental overheads absorption rate'. (2 marks) (c) State TWO (2) reasons which cause under or over-absorption of overheads to occur. (2 marks) [Total: 25 marks]Question 1 (A) Geno Bhd.(Geno) produces curtains. The company requires 100 metres of fabric A to fulfil its weekly demand. Geno has been buying fabric A at the ordering quantity of 300 metres at RM10 per metre. The ordering cost is RM150 per order and storage cost is 1% of the average stock level. The details for fabric A are shown as follows: Maximum Minimum Usage per week (metres) 150 80 Estimated lead time (weeks) 6 2 Additional note: There are 50 operation weeks per year.Required: (:1) Calculate the following: (i) the re-order level; (ii) the maximmn stock level; (iii) the minimum stock level; (iv) the economic order quantity. (8 marks) (b) Compute and compare the cost saving if Geno Bhd. orders at economic order quantity. (6 marks) (c) Explain the term of 'just in time (111') inventory system'. (2 marks)