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6) Recently, Whatsfun Sdn. Bhd. has been losing sales to its close competitors. The sales manager, Sally, noted that some of the job quotations given to the customers are significantly higher than its close competitors. She sought advice from the accountant and after some deliberation, Whatsfun Sdn. Bhd. has decided to allocate its production overhead using departmental absorption rate. The production overhead is to be allocated to each department by using the most suitable cost drivers as follow: Total Machine 1 Machine 2 Assembly Department Department Department 4,800 7,200 4,000 16,000 1,980,000 1,620,000 3,600,000 Floor area (square feet) Book value of machineries (RM) Number of staff Machine hours Direct labour hours 110 80 192,000 128,000 60 200,000 76,000 250 392,000 400,000 196,000 The production overhead is applied to jobs based on the machine hours for Machine 1 and Machine 2 departments, and direct labour hours for Assembly department Required: (1) Calculate the overhead absorption rate for each department. (11) Determine the quotations for both Fun Play 18 and Cool Plav 13 using the departmental overhead absorption rate. 6) Recently, Whatsfun Sdn. Bhd. has been losing sales to its close competitors. The sales manager, Sally, noted that some of the job quotations given to the customers are significantly higher than its close competitors. She sought advice from the accountant and after some deliberation, Whatsfun Sdn. Bhd. has decided to allocate its production overhead using departmental absorption rate. The production overhead is to be allocated to each department by using the most suitable cost drivers as follow: Total Machine 1 Machine 2 Assembly Department Department Department 4,800 7,200 4,000 16,000 1,980,000 1,620,000 3,600,000 Floor area (square feet) Book value of machineries (RM) Number of staff Machine hours Direct labour hours 110 80 192,000 128,000 60 200,000 76,000 250 392,000 400,000 196,000 The production overhead is applied to jobs based on the machine hours for Machine 1 and Machine 2 departments, and direct labour hours for Assembly department Required: (1) Calculate the overhead absorption rate for each department. (11) Determine the quotations for both Fun Play 18 and Cool Plav 13 using the departmental overhead absorption rate