Question 2 JB Royal Pewter Berhad has three production departments: Designing, Machining and Packaging. The budgeted labour hours for Designing are 10,000 hours and budgeted Canteen 1,000 5,000 machine hours for Machining and Packaging are 15,000 and 20,000 hours respectively. The following information relates to the company: Designing Floor area (sq.metre) Machine value (RM) Number of employees 20 Allocated cost: Direct wages 50,000 Indirect wages 8,000 2,500 Power 5,800 Machining 18,000 40,000 5 Packaging 10,000 60,000 5 10 4,500 1,200 6,000 8,000 4,000 2.200 Other costs: Insurance on building Insurance on machinery Rent Supervisors' salaries 12,300 38,600 20,000 4,500 Required: sabsorption of overheads 3) Prepare an overhead analysis sheet and re-apportion the service department costs to the production departments using the most suitable basis. b) Calculate the overhead absorption rate (DAR) using departmental absorption rates