Question 1 Bintang Sdn Bhd is producing X in its factory in Port Dickson. Bintang Sdn Bhd is developing a cost accounting system and decided to create two production departments, machining and finishing department and canteen served as an internal service department. The machining department bases its rate on machine hours and the Finishing department bases its rate on direct labour hours. The following details have been estimated for the next period. Total (RM) Machining Finishing Canteen (RM) (RM) (RM) Allocated overhead (RM) 56,000 21,000 20,000 15,000 Staff cost (RM) 31,000 15,000 10,000 6,000 Depreciation on 30,000 equipment (RM) Rent, rates and electricity (RM) Additional information: Total (RM) Floor area (sq. meters) Value of equipment Machine hours (MH) Direct labour hour (DLH) Machining (RM) 2,000 70,000 21,500 5,000 Canteen (RM) 500 8,000 4,000 100,000 Finishing (RM) 1,500 22,000 15,000 17,000 The service department overhead cost is re-apportioned as follows: Canteen - 80% for machining department, 20% for finishing department. Required: a) Prepare an overhead analysis sheet. (10 Marks) b) Calculate the overhead rates assuming the machining department uses machine hours and the finishing department uses direct labour hour. (2 marks) c) Based on the following information relates to the making of a unit of product X, calculate the production cost for product X. (3 marks) Product X RM200 Direct material cost Direct labour cost: Machining department Finishing department Machine hour Direct labour hour RM100 RM80 5 hours 12 hours (Total: 15 Marks)