Calit Bintang Sdn Bhd is involved in freshwater pearl products. Producing the products will involve processes in three separate production departments which are supported by two service departments. The following are the budgeted overhead costs for the production departments namely, Cleaning, Bleaching and Sorting; and service departments, Maintenance and Canteen for December 2018: Cost Departments Cleaning Bleaching Sorting Maintenance Personnel (RM) (RM) (RM) (RM) (RM) Indirect Material 15,000 13,000 1,000 500 300 Indirect Labour 11,000 8,900 1,700 1,400 800 Other costs: RM Factory rental 25,000 Electricity 11,500 Insurance on machines 8,800 Supervision cost 6,000 The following additional information is available to be used (where appropriate) in apportioning the overhead expenses to the departments: Basis Cleaning Bleaching Sorting Maintenance Personnel Direct labour hours Floor area (m2) 8,000 4,050 15,500 15,000 15,000 10,000 2,000 5,000 Machine hours 16,000 24,000 8,000 Machinery value (RM) 14,000 20,000 800 200 1,000 Maintenance hours 100 70 20 30 15 Number of employees 15 10 15 5 5 Required: a. Explain briefly the terms below: 1. Cost allocation ii. Cost apportionment b. C. d. (4 marks) Prepare the overhead analysis sheet which clearly shows the basis of apportionment. (All calculations will be rounded to the nearest RM) (17 marks) Calculate the overhead absorption rate for Cleaning, Bleaching and Sorting departments using the basis below. (Answers are to be rounded to two decimal places). DEPARTMENT Cleaning BASIS Machine hours Machine hours Direct labour hours Bleaching Sorting (3 marks) Determine the under or over absorption of overheads in each production department. (Round up your answer to the nearest RM). The actual data for the production departments are as follows: Departments Cleaning Bleaching Sorting Total overheads (RM) 40,000 40,300 14,900 Machine hours 15,000 20,000 5,000 Direct labour hours 6,500 3,800 12,000 (6 marks) (Total: 30 marks)