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a. b. i Prepare an overhead analysis sheet for the month of December 2021. Use repeated distribution method to reapportion the service departments' costs
a. b. i Prepare an overhead analysis sheet for the month of December 2021. Use repeated distribution method to reapportion the service departments' costs to the production departments. All answers are to be rounded up to the nearest RM. (21 marks) Based on your answer in part a, calculate the departmental overhead absorption rates (OAR) for production departments using the following basis Machine department ii. Machine hour Welding department Direct labour hour Assembly department - Percentage of direct labour cost (State all answers to two decimal points) (3 marks) Using OAR calculated in part b (i) above, compute the amount of under or over absorption of overhead for each department. C. Identify the term for the following explanation: ii. iv. V. (6 marks) Cost centre which directly involved in manufacturing the product. Overhead cost that can be directly identified with cost centre. Overhead absorbed is more than actual overhead incurred. Process of charging of overhead to cost unit. Method which distributes the service cost centre only to production cost centres even though the service department perform services to others service cost centre.
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