job order costing and overhead applied

. 1 . 1 . 1 . 2 . 1 .3 . 7 . 1 . 8 . 1 . 9 . 1 .10 . 1 . 11 . 4 . 12 . .13 . 1 . 14 . 1 15 1 . 16 17 . 1 . 18 . QUESTION 2 Wira San Bhd (WSB) is producing medals and trophy for sport event. The production process in WSB must undergo sequential process. WSB has two supporting departments: Maintenance Department and Administration Department and two producing departments: Assembly Department and Moulding Department. Costs for Maintenance Department are allocated based on machine hours whereas Administration Department uses square feet occupied as allocation base. Below is the information related to each department for the year 2015: Supporting Departments Producing Departments Maintenance Administration Assembly Moulding Manufacturing overhead costs (RM) 180,000 120,000 810,000 690,000 Direct labor hour (DLH) 3,000 750 48,000 37,500 Square feet occupied 450 3,240 810 Machine hour (MH) 720 1,728 1,152 2 REQUIRED: (a) Allocate the supporting department costs of WSB using the step-down method. (7 Marks) (b) Allocate the supporting department costs of WSB using the reciprocal method