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QUESTION 2 (CLO 3) D&E Bhd is mainly involved in the production of grass cutter machine. There are two production departments involved in producing the

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QUESTION 2 (CLO 3) D&E Bhd is mainly involved in the production of grass cutter machine. There are two production departments involved in producing the grass cutter; Machining and Assembly and supported by two servicing departments; Packaging and Canteen. The Machining department is machine oriented while Assembly department is labour oriented. For the year ended 31 August 2021, the company incurred the following costs: Machining 36,000 40,500 25,000 Assembly Packaging Canteen 40,000 15,000 50,000 108,000 48,000 15,000 Total Indirect materials 141,000 Indirect labour 196,500 Power for machines 40,000 Factory depreciation 180,000 Rates & assessment 15,000 Factory utilities 60,000 Plant & Machinery 130,000 depreciation Factory property 10,000 insurance Below are the production data gathered from the production and service departments: Total Canteen Floor space Machining Assembly Packaging 3,000 2,500 500 6,500 500 190,000 120,000 55,000 5,000 10,000 (sq. meter) Book value of machinery (RM) No. of employees Machine hours Direct labour hours 190 30 150 0 10 60,000 50,000 10,000 34,000 10,000 23,000 1,000 Required: a) Prepare an Overhead Analysis Sheet for the year ended 31 August 2021. (Show your calculation to the nearest RM) (15 marks) b) Reapportioned the two-servicing department by using repeated direct method. Packaging basis is Direct Labour Hour and Canteen basis is the number of employees. (9 marks) c) Calculate overhead absorption rate (OAR) for each production department using the departmental overhead rate. (6 marks)

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