Opah 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.

Additional Information: 1. Total Processing Cooking Packing Store Personnel Floor area (square feet) 7,500 2,250 3,000 1,125 750 375 Maintenance hour 2,000 700 450 400 200 250 Number of employees 44 7 7 21 4 5 Book value of non-current asset 300,000 75,000 120,000 45,000 30,000 30,000 Material handling (%) 100 50 25 25 - - Direct labour hours 8,700 1,500 1,200 6,000 - - Machine hours 15,300 6,500 7,000 1,800 - - Costs Total Production Departments Service Departments Processing Cooking Packing Store Personnel RM RM RM RM RM RM Direct materials 240,000 70,000 80,000 90,000 - - Direct labour 190,000 80,000 50,000 60,000 - - Indirect materials 230,000 40,000 90,000 80,000 20,000 - Indirect labour 180,625 65,000 25,000 43,000 37,000 10,625 Maintenance 25,000 Depreciation of non-current asset 45,000 Electricity 55,000 Factory Insurance 20,000

2. The company uses repeated distribution method for the allocation of costs from the service departments to the production departments. 3. The Processing and Cooking department use machine hours while the Packaging department uses direct labour hours as the basis for overhead absorption. Required: a. Selling overhead refers to the costs incurred in securing orders and is considered as one of non-production overheads. List three (3) examples of selling overhead. (3 marks)

b. Prepare the overhead analysis sheet which clearly shows the basis of apportionment. (25 marks) c. i. Calculate the overhead absorption rate for each 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 actual overhead costs and activities are as below: Processing Cooking Packing Total overheads RM95,500 RM100,000 RM110,000 Direct labour hours 1,800 1,450 3,800 Machine hours 3,200 4,200 1,200 (6 marks) d. Identify the suitable basis of apportionment for the followings overhead costs: i. Fire insurance ii. Rates and assessment iii. Supervisor salaries