Question 1 Razak Sdn Bhd (RSB) manufactures school uniform. The following information concerns its two main departments, Cutting and Sewing. Budgeted overhead Actual overhead Budgeted labour hours Budgeted machine hours Actual labour hours Actual machine hours Cutting Department RM15,000 RM11,000 3,000 5,000 51,000 10,500 Sewing Department RM50,000 RM13,000 4,000 5,000 9,000 52,000 The following data are details related to job order No. 114 for RSB: RM14,000 Direct materials Direct labour: Cutting Department Sewing Department 5,000 hours @ RM6 1,000 hours @ RM6 Machine hours spent in each department: Cutting Department Sewing Department 1,000 machine hours 2,500 machine hours Unit of production 10,000 units Basis of overhead absorption rate for Cutting Department and Sewing Department is labour hour and machine hour respectively. Required: a) Calculate overhead absorption rate for each department. (2 marks) b) Determine production cost per unit and selling price if profit is 10% of total cost. (4 marks) c) Recalculate production cost per unit for Job No. 114 using blanket overhead rate (use direct labour hours). (4 marks)