Sweet Deco Sdn Bhd, a company that manufactures antic furniture based on customers orders. It has three production departments and two services department and the budgeted overhead costs for the coming year are as follows:

Rent and Rates 12,800

Machine insurance 6,000

Utilities expense 3,200

Depreciation 18,00

Production Supervisors salaries 24,000

Heating, Lighting 6,400

Additional information:

	A	B	C	Store	Maintenance
Floor area occupied	3,000	1,800	600	600	400
Machine value (RM)	24,000	10,000	8,000	4,000	2,000
Direct Labour (hours)	3,200	1,800	1,000	-	-
Labour per hour (RM)	3.80	3.50	3.40	3.00	3.00
Allocation of overhead: - Store - Maintenance	50% 20%	25% 30%	25% 50%

Machine hours incurred by Department C was 4,200 hours

A) Prepare the Overhead Analysis Sheet, shows the allocation, apportionment and reapportionment of overhead costs using suitable basis (round up the answer to two decimal places).

B). The production manager of Sweet Deco has suggested that as the actual overheads incurred and units produced are usually different from the budgeted and as a consequence profits of each month, it would be more accurate to calculate the actual overhead cost per unit each month-end by dividing the total number of all units actually produced during the month into the actual overheads incurred.

Do you agree with the production managers suggestion? Provide your explanation.