Lamila Bhd produces chicken dan beef patties for food industry. There are three (3) production departments involved in the manufacture of patties: Processing, Cooking and Packing; and two support departments: Store and Personnel. The information below refers to the month of November 2020. Total Costs Production Departments Processing | Cooking Packing RM RM RM 70,000 80,000 90,000 Service Departments Store Personnel RM RM RM 240,000 190,000 230,000 80,000 40,000 50,000 90,000 60,000 80,000 20,000 65.000 25.000 43,000 37,000 10,625 Direct materials Direct labour Indirect materials Indirect labour Maintenance Depreciation of non-current asset Electricity Factory Insurance 180,625 25,000 45,000 55,000 20,000 Processing 2,250 Cooking 3,000 Packing 1,125 Store 750 Personnel 375 700 450 400 200 250 7 7 21 4 5 Additional Information: 1. Total Floor area 7,500 (square feet) Maintenance 2,000 hour Number of 44 employees Book value of 300,000 non-current asset Material 100 handling (%) Direct labour 8,700 hours Machine hours 15,300 75,000 120,000 45,000 30,000 30,000 50 25 25 1,500 1,200 6,000 6,500 7,000 1,800 2. 3. a. The company uses direct method for the allocation of costs from the service departments to the production departments. The Processing and Cooking department use machine hours while the Packaging department uses direct labour hours as the basis for overhead absorption. Required: Selling overhead refers to the costs incurred in securing orders and is considered as one of non-production overheads. List five (5) examples of selling overhead. (5 marks) Prepare the overhead analysis sheet which clearly shows the basis of apportionment. (17 marks) c. I. Calculate the overhead absorption rate for reach of the production department. (all calculations are to be stated at two (2) decimal places) (3 marks) ii. Calculate the over or under absorption of overheads in each production department. The information regarding the overhead costs and activities are as below: b. Total overheads Direct labour hours Machine hours Processing RM95,500 1,800 3,200 Cooking RM100,000 1,450 4,200 Packing RM110,000 3,800 1,200