Scribd Logo
Upload

Welcome to Scribd!

  • Assignment - OHD ACC116

    Uploaded by

    Nurul Najiha
    535 views3 pages
    The document provides budgeted overhead information for ExMode Plastic Sdn Bhd's production and service departments. It includes: - Total budgeted overhead costs for each department and cost category. - The basis used to initially apportion overhead costs to each department. - Additional information on machine hours, direct labor hours, floor space, etc. for each department. The question requires calculating: 1) Overhead allocation and apportionment to departments 2) Reapportionment of service department costs 3) Overhead absorption rates for each production department 4) Over/under applied overhead for each production department using actual information.

    Original Description:

    Original Title

    Assignment - OHD ACC116 (1)

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document provides budgeted overhead information for ExMode Plastic Sdn Bhd's production and service departments. It includes: - Total budgeted overhead costs for each department and cost category. - The basis used to initially apportion overhead costs to each department. - Additional information on machine hours, direct labor hours, floor space, etc. for each department. The question requires calculating: 1) Overhead allocation and apportionment to departments 2) Reapportionment of service department costs 3) Overhead absorption rates for each production department 4) Over/under applied overhead for each production department using actual information.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    535 views3 pages

    Assignment - OHD ACC116

    Uploaded by

    Nurul Najiha
    The document provides budgeted overhead information for ExMode Plastic Sdn Bhd's production and service departments. It includes: - Total budgeted overhead costs for each department and cost category. - The basis used to initially apportion overhead costs to each department. - Additional information on machine hours, direct labor hours, floor space, etc. for each department. The question requires calculating: 1) Overhead allocation and apportionment to departments 2) Reapportionment of service department costs 3) Overhead absorption rates for each production department 4) Over/under applied overhead for each production department using actual information.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 3

    CONFIDENTIAL

    QUESTION OVERHEAD

    ExMode Plastic Sdn Bhd ia manufacturing company in Northern Region manufactures plastic
    container use for packaging in various industries. The company has three production
    departments – Blending, Molding and Quality departments and two service departments –
    Maintenance and Stores. It is the practice of the company to use the following basis for
    production departments:

    Departments Basis
    Blending Machine hours
    Molding Machine hours
    Quality Direct labour hour

    The following are information regarding the budgeted overhead and the basis used in
    apportioning the overheads for the third quarter of year 2020:
    Maintenanc
    Overhead Costs: Total Blending Molding Quality Stores
    e
    (RM) (RM) (RM) (RM) (RM)
    (RM)
    Direct material 560,000 320,000 140,000 100,000 - -
    Direct labour 250,000 45,000 75,000 130,000 - -
    Indirect material 214,000 62,000 70,000 58,000 17,000 7,000
    Indirect labour 160,000 30,000 38,000 59,000 25,000 8,000
    Rent 105,000
    Depreciation on
    140,000
    machinery
    Utilities 80,000
    Supervision 120,000
    Insurance on building 75,000
    Maintenance 82,000

    total Blending Molding Quality Maintenance Stores


    Floor Area (sq meter) 10 000 2,000 4,000 2,000 1,000 1,000
    No of employees 75 20 15 25 10 5
    Maintenance hours 100 30 45 20 - 5
    Value of machines (RM) 700 000 200,000 350,000 150,000 - -
    Machine hours 15 000 5,000 7,000 3,000 - -
    Labour hours 22 500 4,500 6,500 11,500 - -
    No. of material requisition 500 200 100 150 50 -

    Required:

    Overhead basic total Production department Service department


    cost Blending Molding Quality Maintenance Stores
    Indirect Direct 214,000 62,000 70,000 58,000 17,000 7,000
    CONFIDENTIAL

    material allocate
    Indirect labour
    Direct 160,000 30,000 38,000 59,000 25,000 8,000
    allocate
    Rent Floor area 105 000 21 000 42 000 21 000 10 500 10 500
    Depreciation Value of 140,000 40 000 70 000 30 000 - -
    on machinery machines
    (RM)
    Utilities Floor Area 80,000 16 000 32 000 16 000 8 000 8 000
    (sq meter)
    Supervision No of 120,000 32 000 24 000 40 000 16 000 8 000
    employees
    Insurance on Floor Area 75,000 15 000 30 000 15 000 7 500 7 500
    building (sq meter)
    Maintenance Maintenanc 82,000 24 600 36 900 16 400 - 4 100
    e hours
    Total 976 000 240 600 342 900 255 400 84 000 53 100
    overhead
    Re- Machine 28 000 39 200 16 800 (84 000) -
    apportionment hours
    maintenance
    Re- No. of 21 240 10 260 15 930 5 310 (53 100)
    apportionment material
    stores requisition
    Re- Machine 1 770 2 478 1 062 (5 310) -
    apportionment hours
    maintenance
    Total 291 610 394 838 289 192
    overhead
    production
    OAR 291 610/ 394 838/ 7 289192/11
    5000 000 500
    =RM = RM =RM
    58.32 56.41 25.15

    1. Cost allocation
    2. Cost apportionment
    3. Re- apportionment
    4. OAR

    a.Prepare the overhead analysis sheet for ExMode Plastic Sdn Bhd showing the cost
    allocation, apportionment and reapportion the overheads of service cost centers to
    the production cost centers using the repeated distribution method.
    (Show answers to the nearest RM).
    (22 Marks)
    b. Calculate the overhead absorption rate (OAR) for each of the production cost centers.
    (Show answers to the nearest two decimal places).
    (3 Marks)

    c. Calculate the overhead absorption rate (OAR), if management of the company


    wishes to change its policy to use single blanket/plant wide rate based on direct
    labour hours.
    (Show answers to the nearest two decimal places)
    (1 Marks)
    CONFIDENTIAL

    d. Based on the answer from part (b), determine the over or under absorption of
    overheads in each of the cost centers. Actual information regarding overhead and its
    basis are as follows:
    Blending Molding Quality
    Total Overhead 350,000 400,000 270,000
    Machine hours 5,800 7,500 2,600
    Direct labour hours 4,500 6,900 11,000

    (6 Marks)

    e. Briefly explain the following terms:

    i. Cost allocation
    ii. Cost apportionment
    iii. Cost re-apportionment
    iv. Overhead Absorption Rate (OAR)
    (8 marks)

    (Total: 40 Marks)

    END OF QUESTION PAPER

    You might also like