Printing Card Sdn Bhd has three production departments, X, Y and Z. It currently uses a single overhead rate expressed as a percentage of direct labour cost. The management accountant at the company has suggested that a departmental overhead rate would give more accurate job costs. The data in the tables gives budget information for 2020 and actual data for Order 285.

Budget data Direct labour (RM) Labour hours Machine hours Manufacturing overheads (RM)

Dept X 400,000 32,000 72,000 300,000

Dept Y 300,000 54,000 57,000 500,000

Dept Z 500,000 30,000 65,000 30,000

Order 285 cost data Material (RM) Wages (RM) Labour hours Machine hours

Dept X 98.00 225.00 18 17

Dept Y 110.00 105.56 19 19

Dept Z 75.00 216.67 13 1

Calculate the current overhead rate. (4 marks) (ii) Using the current overhead rate calculated in (i) calculate the full cost, expected profit and selling price for order 285. (6 marks) (iii) Calculate department rates using the dominant activity in each department. (3 marks) (iv) Using the departmental overhead rates in (iii) calculate the full cost, expected profit and selling price for Order 285. (4 marks) (v) What is the amount of underapplied or overapplied overhead for Order 285 if its actual overhead is RM300. (3 marks) (vi) Prepare journal entries to close the underapplied or overapplied overhead of Order 285 to Cost of Goods Sold. (2 marks)