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Hello. I need some guidance on to prepare budgeted factory overhead statements and calculating the overhead costs in parts (a) and (b) A company is

Hello. I need some guidance on to prepare budgeted factory overhead statements and calculating the overhead costs in parts (a) and (b)

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A company is preparing its production overhead budgets and determining the apportionment of these overheads to products. The details of which, together with other statistics and information are given below. Total Machine Machine Assembly Canteen Main- ShopA Shop B enance Indirect wages (RM) 471,360 51,516 55,140 94,044 177,900 92,760 Indirect materials (RM) 101,400 38,400 52,200 7,200 3,600 - Rent of building (RM) 66,825 Building insurance (RM) 9,675 Power (RM) 51,600 Depreciation of machinery (RM) 241,200 Area ('000 sq ft) 45 10 12 15 6 2 Value of machinery (RM'000) 2,412 1,206 1,0?4 132 - - Power usage technical estimates ("/6) 100 50 40 5 - 5 Direct labour ('000 hours) 40 8 6 26 - - Machine usage ('000 hours) 20 5 15 - - - Required: a) Prepare a statement showing the budgeted factory overhead costs for each department using the direct method, showing the basis of apportionment used. Also calculate suitable overhead absorption rates for the departments which you consider most appropriate from the information provided. to) Calculate the overhead cost per unit for Product XYZ if it requires the following labour and machine hours: Department Labour hours Machine hours Machine Shop A 5 8 Machine Shop B 3 5 Assembly 3 1

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