Question
Sunny Enterprise, which manufactures frames, has two production departments namely Machining department and Finishing department. The Machining Departments are machine oriented while the Finishing
Sunny Enterprise, which manufactures frames, has two production departments namely Machining department and Finishing department. The Machining Departments are machine oriented while the Finishing Department is 90% labour oriented. The company also has two service departments, Store and Maintenance department. The following information relates to the company for the month of Jan 2021: Allocated costs: Departments Machining Finishing Store Maintenance (RM) (RM) (RM) (RM) Direct labour 20,760 13,840 3,920 4,000 Indirect labour 11,600 9,080 3,080 3,050 Direct material 29,100 19,400 4,700 2,500 Indirect material 7,400 10,620 4,120 3,250 Other costs: Electricity RM 2,400 Insurance on machinery RM 1,600 Rent RM 24,000 Supervision RM 15,000. The following additional information is given: Direct Machine Number of Machine Floor Material Maintenance Labour Hours Employees Value Area Handling Hour Hours (sq. meter) Machining 4,800 5,000 20 40,000 2,000 60 2,500 Finishing 5,500 4,500 20 60,000 2,000 40 3,000 Store 5 5,000 2,400 900 Maintenance Given below are the actual data for the month of Jan 2021. 7 7,000 1,000 20 Department Machining Finishing Total Overhead 54,980 61,300 Direct Labour Hours 5,000 9,000 Machine Hours 4,500 5,800
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