TEST 1 PAD1323 QUESTION 1 (30 MARKS) A. Fella Impian Berhad is a manufacturing company, the company is organized into five cost centres. Shown below are next year's budgeted operating costs for the company: Direct allocated costs: Total (RM) Production Departments Service Departments Weaving Proofing Finishing Personnel Engineering (RM) (RM) (RM) (RM) (RM) 10.500 3.500 2,500 3.200 5.200 1,500 2.100 1,100 200 1.600 2.600 Direct Material Direct Wages Indirect Materials and wages Power 16,500 9.900 7.600 4.800 1.200 300 200 700 7.200 Other Overhead costs: Rent and rates Supervision Machine Insurance RM10.000 RM12.000 RM3.600 Additional information extracted from next year's budget is shown as below: Weaving Proofing Finishing Personnel Engineering 12,000 27,000 6,000 12,000 3,000 Total 60,000 150,000 120,000 50,000 180,000 50,000 60,000 250,000 360,000 Floor area (Square meters) Machine hours Direct labour hours Number of employees Book value of machinery (RM) 60 90 45 10 45 250 300,000 100,000 100,000 500,000 Required: a. Prepare an overhead analysis sheet for Fella Impian Berhad indirect method. You can assume that the engineering service department does not provide services for the personnel department. (13 marks) b. Calculate the overhead absorption rate for each if the allocation basis is direct labour hours for weaving and proofing department and machine hour for finishing department. (6 marks)