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Question 2 (20 Marks) Im Bhd has two production departments Im and Ran and two service departments, Stores and has budgeted the following costs
Question 2 (20 Marks) Im Bhd has two production departments Im and Ran and two service departments, Stores and has budgeted the following costs for the forthcoming period. Machine maintenance Equipment depreciation Plant insurance Electricity Canteen costs Rent Supervision RM '000' 100 58 58 75 24 50 120 The following information is also available: Im Floor area (Meter sql No. of Employees 10,000 40 Ran Stores 10,000 2,500 General 2,500 20 10 10 Plant book value (RM) 100,000 100,000 25,000 25,000 Equipment depreciation per annum) 40% 40% 10% 10% Machine hours 60,000 40,000 Direct material usage (RM) 200,000 300,000 Re-apportionment of services department into production departments is as to be follows: Stores General im Ran 60% 40% 40% 60% 480
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