QUESTION 3

Company DEF Sdn Bhd has two production departments; Department FRONT and Department BACK. The company uses the basis direct labor hour to determine predetermine overhead rate. A total of 3 300 units were produced on Job 1111.

The following information relates to both departments for the year 2019:

	Department FRONT	Department BACK
Budgeted manufacturing overhead	RM 100 000	RM 110 000
Budgeted direct labor hours	88 000	33 000
Budgeted machine hours	8 000	22 000

The company shows the following information relates to Job 1111:

Materials requisitioned RM 90 000

Direct labor cost RM 77 000

	Department FRONT	Department BACK
Direct labor hours:	6 000 hours	3 300 hours
Machine hours:	1 000 hours	900 hours

Required:

1. Assume that, the company uses a plant-wide predetermined overhead based on direct labor hour. Calculate the total cost and the unit cost for Job 1111.