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ans fully with explaination Question 3 Suki Bhd, an engineering company has five cost centres, three production departments - machine shops, welding shops, assembly shops,

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Question 3 Suki Bhd, an engineering company has five cost centres, three production departments - machine shops, welding shops, assembly shops, two service departments-maintenance and power house. It is the practice of the business to use the following departmental rates Machine shop RM2 per machine hour Welding shop 100% of direct labour cost Assembly shop RM1.00 per direct labour hour The following are the allocated costs (RM000): Machine Welding Assembly Maintenance Power House Indirect wages 400 800 300 250 250 Indirect materials 800 1200 500 300 200 Repairs and 3000 2500 1500 2000 1000 Maintenance 2,000 Other costs Rent 10,000 Power Lighting 5.000 Depreciation on equipment 10.000 Insurance on equipment 1.000 The following basis of apportionment is available: RM Me 24 Weg cmbly Momo It is decided that the costs of the service cost centres should be apportioned in the following percentage: Power house SO Machine Welding Assembly Maintenance Maintenance 20 20 10 Power house 10 20 10 Required: Prepare an analysis of the overheads using the basis provided. (Total overhead column should be shown). Using the repeated distribution method. apportion the overheads of service cost centre Question 3 Suki Bhd, an engineering company has five cost centres, three production departments - machine shops, welding shops, assembly shops, two service departments-maintenance and power house. It is the practice of the business to use the following departmental rates Machine shop RM2 per machine hour Welding shop 100% of direct labour cost Assembly shop RM1.00 per direct labour hour The following are the allocated costs (RM000): Machine Welding Assembly Maintenance Power House Indirect wages 400 800 300 250 250 Indirect materials 800 1200 500 300 200 Repairs and 3000 2500 1500 2000 1000 Maintenance 2,000 Other costs Rent 10,000 Power Lighting 5.000 Depreciation on equipment 10.000 Insurance on equipment 1.000 The following basis of apportionment is available: RM Me 24 Weg cmbly Momo It is decided that the costs of the service cost centres should be apportioned in the following percentage: Power house SO Machine Welding Assembly Maintenance Maintenance 20 20 10 Power house 10 20 10 Required: Prepare an analysis of the overheads using the basis provided. (Total overhead column should be shown). Using the repeated distribution method. apportion the overheads of service cost centre

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