I need help for the following problems. Kindly show all the workings.

Question 1

Question 1 Soy Asahi manufactures unique-taste soy sauce according to customers' preference. It has three production departments and two service departments, Overhead costs for the coming year is as follows: RM Indirect materials: Cleaning department 1,000 Rent and rates 2 800 Machine insurance 6.000 Telephone charges 3.200 Depreciation of plant equipment 18,000 Production's supervisor salaries 24.000 Heating and lighting 6,400 The three production departments Cleaning, Mixing, Ferment and two service departments Store and Maintenance are housed in the new building, the details of which together with other statistics and information are given below: Department Cleaning Mixing Ferment Store Maintenance Floor ares (Sq. M) 3000 1800 600 600 400 Machine value RM24000 RM10DOO|RM8000 RM4000 RM2000 Direct labour hows budgeted 3,200 1,800 1.000 Labour rate per hour RM3.B RM3.5 RM3.4 RM3 RM Additional allocated factory overheads: Indirect materials to each department RM2,800 RM1,700 RM1 200 RM800 RM4600 Service Store's apportioned 50% 25%% 25% Service Maintenance's apportioned 20% 30% 50% Required: (a) Prepare a statement showing the allocation and apportionment of overbeads and the reapportionment of the service department overheads. (19 marks) (b) Calculate a suitable overhead absorption rate for each production department. (6 marks) (Total-25 marks) 13:47 v Jokowi Bond Sdn Bhd (JBSB) produces a type of box which is sold for RM15 per unit, The normal annual production and sales for the boxes are 20,000 units. The following data consist of costs incurred during the year ended 2018: RM Direct material 80,000 Direct Labour 50,000 Variable selling expenses 30,000 Administrative expenses (60% variable) 60,000 Fixed manufacturing overhead 20.000 The management accountant of the company is proposing the following alternatives to increase sales for the year 2019 and to reduce the idle capacity: Reducing the selling price to RM12 per unit which would lead to an estimated increase in the sales volume by 15%. An increase in sales would result in an increase of direct labour cost per unit by 10%. Fixed manufacturing overhead is also expected to increase to RM25,000 due to an aggressive advertising campaign planned to boost sales.Workshop - FOH Question 1 A company is preparing its production overhead budgets and determining the apportionment of these overheads to products. Cost centre expenses and related information have been budgeted as follows: Total Machine Machine Assembly Canteen Main- Shop A Shop B tenance Indirect wages ($) 78,560 8,586 9,190 15,674 29,650 15,460 Consumable materials (incl maintenance) ($) 16,900 6,400 8,700 1.200 600 Rent and rates ($) 16,700 Building insurance ($) 2,400 Power ($) 8,600 Heat and light ($) 3.400 Depreciation of machinery ($) 40,200 Area (sq ft) 45,000 10,000 12,000 15,000 6,000 2,000 Value of machinery ($) 402,000 201,000 179,000 22,000 Power usage - technical estimates (%) 100 55 40 N Direct labour (hours) 35,000 8,000 6,200 20,800 Machine usage (hours) 25.200 7.200 18,000 Required Determine budgeted overhead rates for each of the production departments, using bases of apportionment which you consider most appropriate from the information provided. Question 2 QB Limited is a manufacturer of plastic sheeting. It manufacturers only to customers specific requests and does not carry any stock of 'ready made" sheeting. The only stocks it does hold in its storeroom are raw materials from which the sheeting is produced. The company has two production departments: cutting and finishing. It also has two service departments: the stores and the canteen. The production departments and the stores and the canteen are located within a single building. The information provided below has been extracted from the company's budget for the next financial year, which ends on 30 June 20X9. Overhead budget for the year ended 30 June 20X9 Factory rent (including storeroom and canteen) 220,000 Factory premises insurance (including storeroom and canteen) 11,000 Sundry expenses - cutting department 8.540 Sundry expenses - finishing department 4,150 Machinery insurance 3.900 Depreciation of factory plant and machinery 24,000 Finishing department materials 10,000Indirect labour (including storeroom and canteen) 176,000 Administration salaries (see note below) 24,000 Sundry storeroom costs 13,370 Canteen materials and other costs 29.640 524.600 Note: Administration salaries are to be apportioned equally to the cutting department, the finishing department and the storeroom. The following information is also relevant Department Floor area Indirect Direct Value of plant (Sq. metres) labour labour and machinery ($) (# of employees) Cutting 100,000 24 220,000 Finishing 100,000 50,000 Storeroom 10,000 NNO 10.000 Canteen 10,000 20,000 Service centre costs are apportioned as follows: Department Basis Canteen Total number of employees Storeroom 70% to the cutting department and 30% to the finishing department The company has also budgeted for the following levels of activity for the year ended 30 June 20X9. Department Labour hours Machine hours Cutting 2,900 4,700 Finishing 4,200 680 Required: a) Using appropriate bases of apportionment and appropriate allocations prepare an overhead distribution schedule for QB Limited for the year ended 30 June 20X9. b) Using appropriate bases, re-apportion the service department costs to the production departments c) If the cutting department absorbs overhead using a machine hour basis, and the finishing department absorbs overhead using a labour hour basis, calculate the overhead rates for each of the two production departments for the year ended 30 June 20X9. d) Using the rates calculated in your answer to (c) above, estimate the amount of overhead to be charged to Job XY129 that would require the following labour and machine hours: Department Labour hours Machine hours Cutting 29 Finishing 30 e) Suggest why it is appropriate for the cutting department to use a machine hour basis to recover its overhead and for the finishing department to use a labour hour basis.Merbau Furniture is a main manufacturer of custom-made office furniture in Ipoh, Perak. The company applies job order costing system, where each client's order is treated as separate job. The company currently uses the single rate of overhead absorption rate based on direct labour cost. Given below is the data for the period ended 31 January 2021: Machining Finishing Department Department Budgeted direct labour hours 85,000 hours 65,000 hours Budgeted machine hours 38,000 hours 35,000 hours Budgeted manufacturing overhead RM820,000 RM660.000 Actual direct labour hours 80,000 hours 62,000 hours Actual machine hours 32,000 hours 30,000 hours Actual manufacturing overhead RM747,500 RM567,500 The labour rate per hour in Machining Department and Finishing Department is RM3.50 and RM3.00 respectively. During January 2021, the company received 10 orders and one of the orders is known as Job No. 0121. The following data relates to the job: Job No. 0121 Direct materials: Machining Department RM19,500 Finishing Department RM10,000 Direct labour: Machining Department 1,000 hours Finishing Department 900 hours Hire of special machine: Machining Department RM8,500 Administrative expenses 20% of manufacturing costs Machine hours: Machining Department 700 hours Finishing Department 500 hours 13:48 V Required: a. Calculate overhead absorption rate (OAR) that is currently used by the company. (4 marks) b. Assuming the company is now considering to apply departmental overhead absorption rate (OAR), calculate OAR for each department using the following basis: Machining Department - Machine hour Finishing Department - Direct labour hour (3 marks) c. Calculate the amount of total overhead applied to Job No. 0121. (3 marks) d. Prepare a job cost sheet for Job No. 0121 by showing prime cost, production cost and total cost. (Note: Production overhead is absorbed based on departmental OAR). (7 marks) e. Calculate the selling price of Job No. 0121 if the profit margin is set at 25% on total cost. (3 marks) f. Determine under or over absorption of overhead for each department using departmental rate as calculated in (b). 13:48 (5 marks)Jokowi Bond Sdn Bhd (JBSB) produces a type of box which is sold for RM15 per unit. The normal annual production and sales for the boxes are 20,000 units. The following data consist of costs incurred during the year ended 2018: RM Direct material 80,000 Direct Labour 50.000 Variable selling expenses 30,000 Administrative expenses (60% variable] 60.000 Fixed manufacturing overhead 20,000 The management accountant of the company is proposing the following alternatives to increase sales for the year 2019 and to reduce the idle capacity: Reducing the selling price to RM12 per unit which would lead to an estimated increase in the sales volume by 15%. An increase in sales would result in an increase of direct labour cost per unit by 10%. Fixed manufacturing overhead is also expected to increase to RM25,000 due to an aggressive advertising campaign planned to boost sales