Question 2

Colour Sofa provides upholstery services in Bandar Kijang. It uses a job order costing system to accept orders from the customers. The manufacturing overhead cost is absorbed based on direct labour hour. The budgeted manufacturing overhead cost for the month of

May 2022 is RM53.500. Management expects a total of 10,700 direct labour hours will be used.

d) At the end of May, the actual result of the company's operation indicates that the actual manufacturing overhead cost is RMS0,000. Calculate and determine whether the total overhead cost is under or over absorbed. Explain. ( 5 marks) (Sub total: 30 marks) [Total : 50 marks] c) Prepare journal entries to record the following transactions incurred during May 2022: \begin{tabular}{|c|l|} \hline Jan & \multicolumn{1}{|c|}{ Particular } \\ \hline 3 & Purchase 150 metres of direct material from Bibah Textile on credit for \\ RM2,111. \end{tabular}