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Please no handwriting QUESTION 2 Cengal Jati has two support department which are Administrative and Cafeteria and two manufacturing department namely Fabricating and Assembly. Budgeted
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QUESTION 2 Cengal Jati has two support department which are Administrative and Cafeteria and two manufacturing department namely Fabricating and Assembly. Budgeted data are as follows: Cafeteria RM 230,000 Direct costs Square feet Direct labor hours Machine hours Administrative RM 70,000 4,000 600 Fabricating RM 63, 900 2,000 20,000 4,000 Assembly RM 39, 500 6,000 80,000 1,000 11,000 1,000 Administrative is allocated on the basis of direct labour hours; Cafeteria is allocated base on square feet Required: a) Assign overhead costs to the producing departments using direct method. (10 marks) b) Compute departmental overhead rates, using machine hours for Fabricating and direct labour hours for assembly. (4 marks) c) If unit has a prime costs of RM135 and spends 2 hours in fabricating and 14 hours in assembly, what is unit costs? (5 marks) Tom-10 markaStep by Step Solution
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