Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 4 The following are manufacturing overhead costs for GrabPanda Designs Sdn Bhd. The company has in total four departments: two production departments and

image text in transcribed

Question 4 The following are manufacturing overhead costs for GrabPanda Designs Sdn Bhd. The company has in total four departments: two production departments and two service departments. Production overheads for the year ending 31 December 2021 are expected to be as follows Overbead Rent and rates Lighting and Heating Depreciation of Machinery Insurance of Machinery Supervisors salary Insurance Premises The following information is also available: RM 15.200 12,160 14,000 3,500 15,200 7,600 Production Depts. Service Depts Blending Packaging Stores Maintenance Total Floor Area 400 300 100 150 950 Number of production 9 16 workers Value of Machinery (RM 15 10 4 6 35 000) Each production worker is expected to work 38 hours per week for 48 weeks during 2021. You are required to: (a) Prepare an overhead apportionment schedule for the year ended 31 December 2021, clearly indicating the basis of apportionment for each overhead. (12 marks) (b) Re-apportion the service departments overheads as follows: Stores Maintenance Blending 60% 50% Packaging 40% 50% (4 marks) (d) Calculate overhead absorption rates for the Blending and Packaging Departments for the year ending 31" December 2021 based on respective labour hours per department. (4 marks) Total: 20 marks

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Theory and Analysis Text and Cases

Authors: Richard G. Schroeder, Myrtle W. Clark, Jack M. Cathey

10th edition

470646284, 978-0470646281

More Books

Students also viewed these Accounting questions

Question

Who is the current, rightful owner of the jacket?

Answered: 1 week ago