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Ramzee Burger has three production departments namely: Mixing Department, Moulding Department and Packaging Department. The company also has two service departments, which are Store and
Ramzee Burger has three production departments namely: Mixing Department, Moulding Department and Packaging Department. The company also has two service departments, which are Store and Maintenance Department. budgeted expenses costs for the month of August 20xx are as follows: RM Allocated overhead costs: Mixing Department 14,000 Moulding Department 11,500 Packaging Department 10,000 Store Department 7,600 Maintenance Department 6,200 Electricity 12,000 Factory supervisor salary 30,000 Direct wages 50,600 Direct material 42,500 Rental Canteen 12,000 3,000 Additional information are available: Mixing Department Floor space (Square meter) 2,000 Moulding Department 2,000 Packaging Department 1,500 Store Department 2,000 Maintenance Department 500 No. of employees 20 10 40 Value of machines 40,000 80,000 40,000 6 20,000 4 20,000 (RM) Direct labour 4,800 5,200 6,000 hours Machine hours 6,000 4,000 3,000 Reapportionment: Store 40% 40% 10% 10% Maintenance 30% 40% 10% 20% Actual information for the period are shown in the following table: Mixing Department Moulding Department Production Overhead RM30,000 RM40,000 Packaging Department RM45,000 Machine hours 5,000 4,000 1,300 Direct labour hours 3,500 3,000 8,500 Required: a) Prepare an overhead analysis sheet by showing overhead allocation, apportionment, and reapportionment (using repeated distribution method) for the month of August 20xx. (Round up to the nearest Ringgit Malaysia) (10 marks) b) Calculate the department budgeted overhead absorption rate for each production department using the following basis: Mixing Department Moulding Department Machine hour Machine hour Packaging Department (Round up to two decimal points) Direct Labour hour (2 marks)
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