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please help me i will give good rating (a ) Whatsfun Sdn. Bhd. has three production departments, namely, Machine 1, Machine 2 and Assembly departments.
please help me i will give good rating
(a ) Whatsfun Sdn. Bhd. has three production departments, namely, Machine 1, Machine 2 and Assembly departments. The followings are the budgeted production overhead for the year: RM RM 23,500 15,800 41,200 80,500 Indirect labour: - Machine 1 department - Machine 2 department - Assembly department Indirect material: Machine 1 department Machine 2 department - Assembly department Factory rent Insurance for machineries Depreciation for machineries Electricity Canteen Staff welfare Total production overhead 10,300 6,800 18,700 35,800 150,000 112,000 128.000 69,600 25,300 18.800 620,000 For simplicity purpose. Whatsfun Sdn. Bhd. uses plant-wide blanket rate of direct labour hours to allocate its production overhead. The direct labour hours are budgeted to be 400,000 hours for the year. A 10% of total production cost is estimated for selling and administration costs. The selling price for a job is determined by adding a mark-up of 40% on the total cost. Whatsfun Sdn. Bhd. has just received a request from a customer for a quotation of 2 new jobs - Fun Play 18 and Cool Play 13 with the estimated prime costs of RM7,500 and RM11,000 respectively. The followings are estimated production activities of both jobs: Fun Play 18 Machine 1 department Machine 2 department Assembly department Machine Hours 250 hours 100 hours Direct Labour Hours 200 hours 80 hours 600 hours Cool Play 13 Machine 1 department Machine 2 department Assembly department Machine Hours 400 hours 250 hours Direct Labour Hours 150 hours 100 hours 200 hours Required: (1) Calculate the overhead absorption rate if plant-wide blanket rate of direct labour hours is applied. (2 marks) (11) Determine the quotations for both Fun Play 18 and Cool Play 13 using the plant-wide blanket absorption rateStep by Step Solution
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