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Question 4 Perwira Bhd produces two steel products known as Strong and Brave. Each product started in the Machining Department and was completed in the Finishing Department. There are also two service departments, Canteen, and Maintenance in the factory. During the period just ended, actual overhead costs were as follows: Total (RM) Machining RM 150,000 Finishing RM 100,000 Canteen RM 50,000 Maintenance RM 25,000 325,000 43,000 Allocated overhead Depreciation on equipment Rent, rates, and electricity Supervisor's salary 60,000 36,000 Additional information: Machining 125,000 Finishing 45,000 Canteen 20,000 Maintenance 25,000 5,000 2,800 1,200 1,000 Background of departments: Total Cost of 215,000 equipment (RM) Floor area (sq 10,000 meters) Number of 45 employees Machine hours 42,000 (MH) Direct labour 65,000 cost (RM) 20 15 6 4 42,000 10,000 55,000 The service department overhead cost is re-apportioned as follows: Canteen Maintenance number of employees 70% for Machining department, 30% for Finishing department Required: a) Prepare an overhead analysis sheet. (Step 1 and Step 2) b) Calculate the overhead rates assuming Machining Department uses machine hours and Finishing Department uses a percentage of direct labour costs. c) Based on the following information relating to the making of a unit of Brave, calculate the production cost for Brave. Brave RM500 Direct material cost Direct labour cost: Machining department Finishing department Machine hour RM160 RM120 6 hours