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QUESTION 1 Limau Manis Sdn Bhd is a medium-sized company which manufactures a variety of pickles in the northern region of Malaysia. In order
QUESTION 1 Limau Manis Sdn Bhd is a medium-sized company which manufactures a variety of pickles in the northern region of Malaysia. In order to complete the production, the pickles must go through Cutting Department and Finishing Department. Cutting Department is machine oriented, whilst Finishing Department is labour intensive. There are two service cost centres in the company, namely, Canteen and Maintenance departments. The following is cost statement provided for the year ended 31 March 2022: Additional information: RM Direct material costs Indirect material costs RM 450,000 Cutting Department 120,000 Finishing Department 100,000 Canteen 45,000 Maintenance 42,000 Electricity 50,000 Factory rental 64,000 Supervision 36.000 | Building insurance 8,000 TOTAL COSTS 915,000 Total Cutting Department Department Finishing Canteen Maintenance Kilowatt hours 250,000 120,000 100,000 20,000 10,000 Area spaces (sqm) 480 150 150 84 96 No. of employees 80 28 28 10 14 Maintenance hours() 100 30 40 10 20 Machine hours 100.000 60,000 40,000 - - Direct labour hours 50,000 20,000 30,000 Required: a. Differentiate between cost apportionment and cost reapportionment. (4 marks) b. Prepare the overhead analysis sheet which clearly shows the basis of apportionment using repeated distribution method for reapportionment of service departments. (All calculation to be rounded to the nearest RM) (17 marks) C. Calculate the overhead absorption rate for each of the production departments using an appropriate basis of absorption (in two decimal points). Use the following information when necessary.
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