3

Josh Berhad has two production departments, X and Y, and two service departments, Store and General Service. The company has budgeted the following costs for tha forthmmina nariod: Overheads are absorbed in both production departments on a Machine Hour basis. Required: (a) Prepare an overhead analysis statement for the period, using suitable bases of apportionment. (15 marks) (b) Calculate the overhead absorption rate (to the nearest 2 decimal points) for the production departments. (4 marks)