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Question 1 Solidform Sdn Bhd manufactures furniture to order. It is divided into two production departments, A and B, and two service departments, X and

Question 1

Solidform Sdn Bhd manufactures furniture to order. It is divided into two production

departments, A and B, and two service departments, X and Y. The following are the

projected overhead costs for the coming year:

Total (RM)

Rental 25,000

Lighting and heating 18,000

Machine insurance 20,000

Depreciation of machinery 35,000

--------------

98,000

--------------

The company manufactures furniture with a high level of human capital, the details of

which, as well as other statistics and information, are provided below:

image text in transcribed
A Floor area occupied (9g. metres) 1.500 2.500 500 500 Machine value (RM) 12,000 24.000 2.000 2.000 Machine hours T.300 Direct labour hours 1.500 2.000 Labour rates per hour (RM) Allocated overheads: Specific to each department (RM) 5.000 5.000 2.000 1.000 Service Department X's costs apportioned Service Department Y's costs apportioned 50% 50%

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