QUESTION 2

(15 MARKS)

The following cost data relate to the manufacturing activities of Badang Enterprise during the most recent year:

Manufacturing overhead costs incurred during the year:

Property taxes

Factory utilities

Indirect labour

Depreciation: factory

Insurance: factory

Other costs incurred during the year:

Purchases of raw materials

Direct labour cost

Inventories:

Begin raw materials

Ending raw material

Beginning work in process

Ending work in process

Begin finished goods

Ending finished goods

Additional Information:

Indirect materials included in the manufacturing overhead incurred

RM

9.600

10,600

10.300

9,000

10.500

56.000

87.000

28.000

29.000

16.000

14,000

42.000

54.000

3.000

The company applies manufacturing overhead job using a predetermined overhead rate based on direct-labour hours. At the beginning of the year, the estimated total manufacturing overhead cost was RM80,000 and direct labour hour is 16,000 hours. It was found that the actual direct labour hour is 11,000 hours

Required:

a) Determine the predetermined overhead rate for the year

(2 marks)

1. Determine the manufacturing overhead applied to the job
2. Compute the over/under applied overhead
3. Prepare the schedule of cost of goods manufactured for the year

(2 marks)

(2 marks)

(9 marks)

The following cost data relate to the manufacturing actrvities of Badang Enterprise during the most recent year: The company applies manufacturing overhead job using a predetermined overhead rate basod on direct-labour bours. At the beginning of the year, the estimated total manufacturing overhead cost was RMS0,000 and direct labour hour is 16,000 hours, It was found that the actual direct labour hous is 11,000 hours