Question
Ali Baba Sdn Bhd is a furniture factory located in Johor and it has been in operation for 10 years. Throughout these years there are
Ali Baba Sdn Bhd is a furniture factory located in Johor and it has been in operation for 10 years. Throughout these years there are three production departments, namely, Design Department, Assembling Department, Finishing Department. Apart from that, Ali Baba Sdn Bhd also has a department formed specifically to assist the production departments, namely the Support Department, which provides assistance such as the maintenance of machines and others to the production departments. In December 2020, Ali Baba Sdn Bhd suffered system malfunction and this severely affected them. The following is one of the information affected by system malfunction:
Overhead Total Overhead (RM) OAR (RM) Lighting 40000 e Factory Rental a 800 Insurance of machines 1.5a 0.5 Depreciation of machines (1.5a) / 2 0.25 Cleaning b 80 Security 9000 90 Building maintenance c 50 Utilities d 162
overhead | total overhead | OAR (RM) |
Lighting | 40000 | e |
Factory rental | a | 800 |
Insurance of machines | 1.5a | 0.5 |
Depreciation of machines | 1.5a/2 | 0.25 |
Cleaning | b | 80 |
Security | 9000 | 90 |
Building maintenance | c | 50 |
utilities | d | 162 |
A manager of Ali Baba Sdn Bhd approaches you, asking your help to solve the puzzle. You are required to calculate the value of (a), (b), (c), (d), (e), (f), and (g) and reproduce the Overhead Analysis Sheet for the year ended 30 December 2020. For your information, Ali Baba Sdn reapportioned the overhead in service departments to production departments using secondary distribution. The following is additional information related to overhead:
Basis/department | design | assembling | Finishing | Support | Total |
Kilowait | 240 | 400 | 200 | 160 | f |
Value of machines | 0.25g | 0.55g | 0.2g | - | g |
Floor area | 0.2h | 0.4h | 0.25h | xh | h |
No. of employees | 8 | 22 | 14 | 6 | 50 |
Maintenance hours | 20 | 60 | 20 | 0 | 100 |
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