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Question 1 Points: 20 Vanilla Sdn Bhd has two production departments (Assembly and Finishing) and two service departments (Stores and Maintenance). Its budgeted overheads for

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Question 1 Points: 20 Vanilla Sdn Bhd has two production departments (Assembly and Finishing) and two service departments (Stores and Maintenance). Its budgeted overheads for the next quarter (July to September) are as follows: RM Rent and rates Floor area meter square 80,000 Plant and depreciation light and heat Canteen costs Finishing costs Plant cost (RM) Floor area meter square Number of employees Direct allocated to finishing departments 100,000 50.000 85.000 32,000 These overheads are to be allocated and apportioned as fairly as possible to the four departments using the information contained in the table below. Assembly Finishing Stores Maintenance Plant cost (RM) 25.000 60.000 7.500 7.500 Number of 10 20 10 10 employees Floor area (m2) 2.000 4,000 3.000 1.000 In the following quarter (October to December). Vanilla Sdn Bhd's accountant has already completed the initial allocation and apportionment of budgeted overheads to the four departments and now wished to reapportion the service department overheads to the production departments. He has provided the following information: Assembly Finishing Stores Maintenance Stores (96) 50% 30% Maintenance (96) 70% 30% Required: a) Allocate and apportion the budgeted overheads to the four departments (14 marks) b) Reapportion the service department overheads to the production departments (6 marks)

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