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Question 2 Vignesh is the accountant in Muthu Curry Sdn.Bhd where the manufacturing operation is made up of three production departments and two service departments. The Mixing and Blending departments are highly automated while the Packaging Department is highly dependent on labour. The overheads budgeted for the company are tabulated below: Production Departments RM Service Departments RM Allocated Overheads: Mixing Blending Packaging Repairs R&D Salaries 20,000 10,000 30.000 20,000 30,000 Consumables 10,000 5,000 10.000 6,000 4.000 Transport 5.000 5,000 5.000 4,000 6.000 In addition, the following overheads are budgeted but all departments consume them and have to be apportioned using suitable basis from the information provided: Rental RM 160,000 Insurance of Assets RM 100,000 Canteen Subsidy RM 40,000 Floor Area (Sq Meter) NBV of Assets Head Count Machine Hours Direct Labour Hours Mang 80,000 1.500.000 180 3,000 1.0001 Blending 50,000 500.000 120 2.000 1.000 Packaging 30.000 300.000 50 1,000 12.000 Repairs 20,000 10 R&D 20,000 200.000 40 Total 200.000 2.500.000 400 6,000 14 000 Question 2 Vignesh is the accountant in Muthu Curry Sdn.Bhd where the manufacturing operation is made up of three production departments and two service departments. The Mixing and Blending departments are highly automated while the Packaging Department is highly dependent on labour. The overheads budgeted for the company are tabulated below: Production Departments RM Service Departments RM Allocated Overheads: Mixing Blending Packaging Repairs R&D Salaries 20,000 10,000 30.000 20,000 30,000 Consumables 10,000 5,000 10.000 6,000 4.000 Transport 5.000 5,000 5.000 4,000 6.000 In addition, the following overheads are budgeted but all departments consume them and have to be apportioned using suitable basis from the information provided: Rental RM 160,000 Insurance of Assets RM 100,000 Canteen Subsidy RM 40,000 Floor Area (Sq Meter) NBV of Assets Head Count Machine Hours Direct Labour Hours Mang 80,000 1.500.000 180 3,000 1.0001 Blending 50,000 500.000 120 2.000 1.000 Packaging 30.000 300.000 50 1,000 12.000 Repairs 20,000 10 R&D 20,000 200.000 40 Total 200.000 2.500.000 400 6,000 14 000