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Rimbun Bhd. is in the process of preparing the overhead budget for the year. The company has two production departments; PD One and PD

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Rimbun Bhd. is in the process of preparing the overhead budget for the year. The company has two production departments; PD One and PD Two and two service departments to support the production departments which are Personnel and Maintenance department. Personnel department will manage the employees' affairs and maintenance department will make sure all facilities are in good condition. The following information relates to the budgeted overhead cost information for its production cost centres and service cost centres: Overhead item Total RM PD One RM PD Two Personnel Maintenance RM RM RM Indirect wages 7,800 2,000 4,000 800 1,000 Indirect material 7,795 5,000 1,200 795 800 Power 6,000 Rent 9,000 Depreciation of 20% on machine cost 20% on cost Other related information: Floor area (sq. meters) Cost of machine Horse power (kilowatt) No. of employees Maintenance service (%) Budgeted Machine Hours Budgeted Direct Labour cost RM25,000 RM15,000 PD One PD Two Personnel Maintenance 12,500 7,500 1,000 1,000 2,000 1,000 80 65 10 15 60 35 5 8,000 2,000 RM30,000 RM50,000

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