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(b) Tom's Racing Bhd makes car accessories for Toyota Motor Corp. The company has two production departments A and B supported by two service departments,
(b) Tom's Racing Bhd makes car accessories for Toyota Motor Corp. The company has two production departments A and B supported by two service departments, X and Y. The overhead budget for year 2006 has been established and most of the costs have already been directly allocated to t departments as shown below: Production Department A B Service Department Y 200,000 300,000 32,000 42,000 Allocated overheads (RM) The overhead that need to be apportioned: Rent and rates Canteen costs Machine depreciation RM 90,000 RM 20,000 RM 30,000 The basis of apportionment is as follows: Production Department Service Department A B Y Machine value (RM) 30,000 20,000 7,000 3,000 Number of employees 20 20 5 5 Floor area (Square metres) 40,000 60,000 10,000 10,000 Required: (i) Produce an overhead distribution sheet for the year 2006 (12 marks)
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