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QUIZ1 The following are costs for Janti limited. There are two production departments namely Mixing and Packing and two service departments namely maintenance and General

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QUIZ1 The following are costs for Janti limited. There are two production departments namely Mixing and Packing and two service departments namely maintenance and General Services, Mixing Packing Maintenance General Total RM RM RM Services RM RM Direct material cost 8,000 7.000 2,000 1,000 18,000 Indirect material 35.000 42.000 10,000 15.000 102,000 Indirect labour 11,000 14,000 2,000 9,000 36,000 Wages and salaries 180,000 Insurance of equipment 130,000 Building utilities 70.000 Power 110,000 Additional information: Mixing RM Packing RM Maintenance RM Total RM Floor area (Square meters) Number of employees Kilowatt hours Value of equipment(RM) Machine hours Labour hours Service hours 5,000 130 16,000 70,000 15.000 40,000 3.000 7.000 60 31.000 150,000 15,000 20,000 5.000 1,000 30 1,000 9,000 General Service RM 3,000 10 7,000 20,000 General Services supports the three departments based on proportions 50% (mixing), 30% (packing): 20% (maintenance) Maintenance services the two production departments based on service hours Required a) Calculate predetermined OAR for the production departments

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