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Overheads allocated, apportioned and re-apportioned to the two production cost centres in a factory for a period were: Production cost centre X Y Budget RM161,820
Overheads allocated, apportioned and re-apportioned to the two production cost centres in a factory for a period were: Production cost centre X Y Budget RM161,820 RM97,110 Actual RM163,190 RM96,330 Overheads are absorbed using predetermined rates. A machine hour rate is used in Production Cost Centre X and a direct labour hour rate in Production Cost Centre Y. Machine and direct labour activity in each production cost centre is: Production Cost Centre X Y Machine hours: Budget 8,700 1,760 Actual 8,960 1,725 Direct labour hours: Budget 6,220 8,300 Actual 6,276 7,870 Required Calculate for each production cost centre for the period: (i) The predetermined production overhead absorption rate (3 marks) (ii) The production overheads absorbed (3 marks) (iii) The over/under absorption of production overhead (4 marks)
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