C: CASE STUDY

Bintang Jaya Bhd operates two (2) production departments, Machining, and Assembly and two (2) service departments, Canteen and Store. Machining department is highly dependent on the use of machines, while Assembly department relies on its labour force.

The following budgeted cost information was extracted for the month of April 2021:

	Total	Machining	Assembly	Store	Canteen
	RM	RM	RM	RM	RM
Indirect materials	30,780	11,980	11,800	4,000	3,000
Indirect wages	49,400	15,000	18,200	9,200	7,000
Lighting	28,050
Power expenses	12,840
Depreciation on machines	10,300

Additional information:

	Total	Machining	Assembly	Store	Canteen
Number of employees	250	70	150	15	15
Value of machines (RM)	150,000	100,000	45,000	2,000	3,000
Horse power of machines	5,000	3,500	1,150	100	250
Light points	500	200	150	100	50
No. of store requisitions	250	80	120	-	50
Machine hours	16,500	12,500	4,000	-	-
Direct labour hours	11,400	2,400	9,000	-	-

The actual production overhead incurred and activities for April 2021were as follows:

	Machining	Assembly
Production overhead (RM)	102,000	82,500
Direct labour hours	5,500	12,500
Machine hours	18,000	4,000

Required:

1. Prepare the overhead analysis sheet of Bintang Jaya Bhd using repeated distribution method for the reapportionment of service departments (calculate your answer to the nearest RM).

2. Calculate an overhead absorption rate (OAR) for production department based on

1. Departmental rate
2. Single blanket rate using machine hours

3. Calculate under or over absorbed of overhead for each department based on the following actual data of Bintang Jaya Bhd.