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VI v 3 (25 MARKS) The information given below relates to the forthcoming period for a manufacturer's operation. There are four cost centres of which
VI v 3 (25 MARKS) The information given below relates to the forthcoming period for a manufacturer's operation. There are four cost centres of which two are involved in production and two are service cost centres. Other costs: Rent and rates 4,641 Buildings insurance 3,713 Electricity and gas 6,800 Plant depreciation 28,390 Plant insurance 8,517 The following are the normal activity rates for the departments: Production Department Service Department Area occupied (square metres) ' Plant at cost (RM'000) ' Number of employees Machine hours Direct labour hours 6,800 18, Number of stores requisitions 27,400 3,400 The company is preparing to bid for Job 847. The details are as follows: Direct material cost per unit RM487 Direct labour cost per unit RM317 Machine hours in department A 195 hours Direct labour hours in department B 102 hours REQUIRED: a. Calculate the production overhead absorption rate for departments A and B. b. Determine the total production cost for Job 847
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