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Top Exhaust Pte Ltd (TEPL) manufactures high quality exhaust systems for cars. The company has two production departments: Bending and Welding. In the Bending Department,

Top Exhaust Pte Ltd (TEPL) manufactures high quality exhaust systems for cars. The company has two production departments: Bending and Welding. In the Bending Department, the sheet metal is cut and bent into shape, using a series of cutting, stamping and bending machines, and in the Welding Department, the exhaust pipes are welded and packed for shipping.

There are other departments supporting the manufacturing process: Machinery Maintenance, Material Handling and Quality Control. The budgeted overhead costs and other relevant information for the respective departments for the new financial year are as follows:

Bending Welding Machinery Maintenance Material Handling Quality control
Overhead cost $800,000 $400,000 $250,000 $230,000 $350,000
Machine hours 30,000 4,000 5,000
Labour hours 1,000 10,000 2,000 800 1,000

An analysis of the services provided by the support departments indicates that their costs should be apportioned accordingly as per below:

Provider of service Bending Welding Equipment Maintenance Material Handling Quality Control
Machinery Maintenance 40% 50% - 5% 5%
Material Handling 44% 50% - - 6%
Quality Control 75% 25% - - -

Required: (Show all workings clearly and round all solutions to 2 decimal places)

(a) Compute the total overhead costs for the Bending Department and Welding Department after the re-apportionment of the costs from the support departments. (16 marks)

hi I need detailed explanation with question (a) with ans! thank you!

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