QUESTION 2 Teras Maju Sdn Bhd is an engineering company operating in Kawasan Perindustrian Sungai Lalang since 2018. The company has three production departments; Machining, Welding and Assembly; and two service departments; Store and Maintenance. The following are the budgeted data for the month of December 2021: Cost Machine Welding Departments Assembly Store (RM) (RM) (RM) (RM) Maintenance (RM) Direct material 35,000 24,000 15,000 Indirect material 20,000 25,000 40,000 16,500 19,500 Direct wages 60,000 98,000 76,000 Indirect wages 55,000 35,500 20,000 8,000 6,500 Other costs: Machinery power Depreciation on machine Maintenance of building Rent and rates Staff training RM 100,000 45,000 20,000 95,000 10,000 Additional information: Machine Welding Assembly Store Maintenance Floor space (square meter) 2,000 2,500 Horsepower of machines 600 300 3,000 600 2,000 500 Value of machines (RM) 150,000 50,000 100,000 - Number of employees 15 25 30 5 5 Number of materials issued 30 24 18 3 Direct labour hours @ RM10 4,000 5,000 10,000 per hour Machine hours 6,200 4,000 4,000 Maintenance hours 300 100 90 10 The company compares the budgeted data with the actual data to monitor the costs variance (if any) for production departments. The actual data for the month of December 2021 is given below: Machine Welding Assembly Total Production Overhead (RM) 180,000 150,000 160,000 Total Direct Labour Hours (hour) 5,000 5,200 9,800 Total Machine Hours (hour) 6,000 3,800 4,400