Keanu Bhd has three production departments, A, B and C; and two service departments, Stores and Maintenance. For the forth coming period, the total budgeted overhead costs are as follows: Allocated Costs: A B C Stores Maintenance RM RM RM RM RM '000 '000 '000 '000 '000 Indirect Materials 13 11 9 4 3 Indirect Labour 10 5 4 6 5 Other Costs to be Apportioned: Heat and Light RM 18,000 Rent and Rates RM 20,000 Machine Insurance RM 14,000 Building Insurance RM 12,000 Canteen Costs RM 7,200 The following additional information are obtained: A B C Stores Maintenance Labour Rate 6.00 5.00 6.00 NIL NIL per Hour (RM) Machine 10,000 12,000 10,000 NIL NIL Hours No. of 60 50 40 20 10 Employees Direct Labour 5,000 6,000 7,000 NIL NIL Hours Area (sq. feet) 7,500 6,000 4,500 3,000 3,000 Machine 50,000 60,000 50,000 300,000 20,000 Value (RM) Material 1,000 800 900 NIL 800 Requisitions At present the company absorbs its overhead using a material percentage rate for each department, but the new accountant has proposed to change to Machine hour rates for Department A and B, and Direct Labour hours for Department C. a. Required: Prepare an overhead analysis sheet for the forthcoming period, showing clearly the appropriate bases of apportionment to be used (to the nearest RM). (17 marks) b. Calculate the overhead absorption rate for each of the production department using the proposed absorption method of overhead absorption (nearest two decimal places). c. (3 marks) Calculate the total cost per unit for each of the two products using the hourly overhead absorption rates calculated in part (b). Matrix 1 Matrix 2 Material Cost per Unit RM 170 RM 160 Direct Labour Hours B Machine Hours ABC 2 2 222 2 5 2 252 ABC 432 224 4 (5 marks) (Total: 25 marks)