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Question 3 Proton Motors Ltd has three products (T1, T2 & T3) and two services departments (Stores and Maintenance) within its factory at Bintulu, Malaysia.
Question 3 Proton Motors Ltd has three products (T1, T2 \& T3) and two services departments (Stores and Maintenance) within its factory at Bintulu, Malaysia. Its budgeted overhead cost for the year 2020 were allocated to the five departments were as follows: The following budgeted costs have yet to be apportioned to the five departments: In addition, the following information relating to the five departments is available: Budgeted machine hours for the period were 200,000 for Department T1, 125,000 for Department I2 and 100,000 for Department T3. Actual results for this year were: Required: (a) Produce a budgeted overhead distribution table, for the period of 2020, showing the allocated and apportioned costs for the five departments. (b) Re-apportion the budgeted Service Department costs to Production Departments using simultaneous equations. (c) Calculate a pre-determined overhead absorption rate per machine hour for each of the Production Departments. (d) Calculate the over/under absorbed overhead for each of the production departments for the period
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