QUESTION 2 Osaka Sdn Bhd is a manufacturing company that has 3 production departments; Assembly, Machining and Finishing; and 2 service departments which is Store and Maintenance. The following forecast information relates to the year ended October 2018: Allocated Costs: Indirect material Assembly Machining Finishing Store Maintenance RM RM 15,000 18,000 23,000 9,000 10,500 75,500 Indirect Labour Assembly 13,000 Machining 10,000 Finishing 14,500 Store Maintenance Other Costs: 7,000 10,000 54,500 Rent on building Insurance on plant Depreciation on plant Supervisor's salary Utilities Power and heating 40,000 15,000 8,500 17,000 21,000 13,000 244,500 Additional information: Floor Area Assembly Machining Finishing 3,000 3,500 Store Maintenance Total 3,000 700 1,300 11,500 (Sq. meter) No. of 40 40 50 10 10 150 employees Kilowatt 300 400 150 50 100 1,000 hours Plant value 10,000 50,000 30,000 10,000 100,000 (RM) No. of 1,500 2,000 3,500 - 1,000 8,000 material requisitions Maintenance 600 3,500 2,000 500 hours Direct labour 10,000 5,000 15,000 hours Machine 2,000 18,000 7,000 6,600 30,000 27,000 hours Required: a) Prepare an Overhead Analysis Sheet for the year ended October 2018. b) Calculate the overhead absorption rate for each production department using the following basis of absorption: :Direct Labour Hours Assembly Machining : Machine Hours Finishing :Direct Labour Hours c) Actual results from production departments for the year 2018 were: Departments Assembly Machining Finishing Direct labour hours 10,500 4,500 16,000 Machine hours 1,900 17,800 7,100 Actual overhead (RM) 68,000 90,000 96,700 Using the overhead absorption rates in (b) above, determine over or under absorption of overheads in each department. Nopal Fabrics Trading received an order from a customer to produce 200 unit of customized corporate attire. The following information is available for JOB X70. Additional information for the cost centers are as follows: Cutting Department Sewing Department Budgeted overhead (RM) 12,500 18,600 Budgeted direct labour hours 6,500 6,200 Budgeted machine hours 2,500 7,400 JOB X70 Direct labour. Cutting department @ RM5.00 per hour Sewing department @ RM3.00 per hour 154 hours 160 hours Machine hours: Cutting department Sewing department Direct materials - Fabric, thread, needles Indirect materials - Button, lace, zip Direct expenses - cost of renting a sewing stitches machine Administration and general expenses Delivery expenses 20 hours 40 hours RM10,800 RM3,000 RM2,200 RM500 RM150 Overhead are absorbeb based on machine hours and direct labour hours for cutting and sewing department respectively. Required: a. Prepare a job cost sheet for JOB X70, showing clearly:- i. Prime cost ii. iii. Production cost Total cost iv. V. Selling price with profit mark up of 100% Selling price per unit (10 marks) b. State TWO (2) characteristics of job costing. (2 marks)