Question
Comfy Designs Sdn Bhd has three jobs performed in separate production departments: Measure, Cut and Swe. The overheads of the services department Maintenance, Delivery
Comfy Designs Sdn Bhd has three jobs performed in separate production departments: Measure, Cut and Swe. The overheads of the services department Maintenance, Delivery and Administration are apportioned to the production departments using the percentage shown in the table below: Production Deparments Service Departments Measure Cut Sew Overheads Maintenance S 60,000 S 80,000 $ 100,000 35% 30% 20% Delivery 50% 25% 25% Administration 30% 70% Maintenance Delivery Administration $32,000 $62,000 $88,000 15% Additional information: Measure Cut Sew Direct Labour hours 3000 2300 5000 Machine hours 2100 3600 3300 Direct Labour rate $60 $50 $90 Job 123, Job 228 Direct materials Direct labour hours Machine hours Required: i. 11. Measure Dept Cut Dept $65,500 30 $32,000 15 15 50 Calculate the OAR for each production department. Calculate the cost of each job. (Total: 20 marks)
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