ACC116

INTRODUCTION TO COST ACCOUNTING

ASSIGNMENT – OVERHEAD
MARCH – JULY 2021

NAME : AHMAD IRFAN BIN ZAKARIA

STUDENT ID : 2020836308
GROUP : BA1112C
LECTURER’S NAME : PUAN SYAZLIANA BINTI KASIM
SUBMISSION DATE : 2/7/2021
 A) Overhead Analysis Sheet

Overhead Basis Total Weaving Inspection Finishing Canteen Maintenance

cost (RM) (RM) (RM) (RM) (RM) (RM)
Factory rental Floor area 80,000 28,070 19,649 11,228 11,228 9,825
(square feet)
Insurance on Floor area 24,800 8,702 6,091 3,481 3,481 3,046
factory (square feet)
building
Depreciation Machine 53,600 20,615 10,995 9,621 6,872 5,497
of machinery value
Depreciation Floor area 72,800 25,544 17,881 10,218 10,218 8,940
of factory (square feet)
building
Power Horse power 96,800 48,400 24,200 9,680 - 14,520
expense
Production Number of 26,400 11,314 7,543 5,029 1,257 1,257
supervisor employees
salary
Allocated Direct 27,600 10,000 7,600 6,000 2,400 1,600
overhead allocation
Total allocated 382,000 15,2645 93,959 55,257 35,456 44,685
and
apportioned
overhead

Reapportioned
overhead
Canteen 15,955 10,637 7,091 (35,456) 1,773
Maintenance 12,670 8,447 21,117 4,223 (46,458)
Canteen 1,900 1,267 845 (4,227) 211
Maintenance 58 38 96 19 (211)
Canteen 9 6 4 (19) 1

Total 382,000 183,237 114,354 84,410

Budgeted
Overhead
 B) AOR

Weaving Inspection Finishing

Total budgeted 183237 114354 84411
overhead (RM)
Basis Machine hour Direct labour hour Direct labour hour
Budgeted basis 2500 1200 2000
OAR 183237 114354 84411
=Total budgeted OH 2500 1200 2000
Budgeted basis
OAR RM 73.29 per RM 95.30 per direct RM 42.21 per direct
machine hour labour hour labour hour

C) Over- or under-absorption

Weaving Inspection Finishing

Absorbed overhead RM73.29 x 3080 RM95.30 x 1050 RM42.21 x 2400
(RM) =225733 =100065 =101304
Actual overhead 185900 110400 95400
(RM)
Difference 39833 (10335) 5904
Over- or under- Over absorbed Under absorbed Over absorbed
absorption

D) TWO (2) suitable overhead costs for the following basis of apportionment:

i. Floor area (square feet)

 Depreciation of building
 Factory rental

ii. Number of employees

 Supervisor
 Administration

iii. Cost of building

 Insurance on building
 Depreciation of building

iv. Book value of machineries (RM)

 Depreciation of machine
 Insurance of machine
 APPENDIX
APPORTIONMENT

Factory Insurance Depreciation of Depreciation Power Production

rental on factory machinary of factory expense supervisor
building building salary
Basis Floor area Floor area Machine value Floor area Horse power Number of
employees
Weaving (2000/5700) (2000/5700) (15000/39000) (2000/5700) (5000/10000) (18/42)
x 80000 x 24000 x 53600 x 72800 x 96800 x 26400
=28070 =8702 =20615 =25544 =48400 =11314
Inspection (1400/5700) (1400/5700) (8000/39000) (1400/5700) (2500/10000) (12/42)
x 80000 x 2400 x 53600 x 72800 x 96800 x 26400
=19649 =6091 =10995 =17881 =24200 =7543
Finishing (800/5700) (800/5700) (7000/39000) (800/5700) (1000/10000) (8/42)
x 80000 x 2400 x 53600 x 72800 x 96800 x 26400
=11228 =3481 =9621 =10218 =9680 =5029

Canteen (800/5700) (800/5700) (5000/39000) (800/5700) (2/42)

x 80000 x 2400 x 53600 x 72800 --- x 26400
=11228 =3481 =6827 =10218 =1257
Maintenanc (700/5700) (700/5700) (4000/39000) (700/5700) (1500/10000) (2/42)
e x 80000 x 2400 x 53600 x 72800 x 96800 x 26400
=9825 =3046 =5497 =8940 =14520 =1257

REAPPORTIONMENT
Canteen-RM35456
Basis-Number of employees

Weaving (18/40) x 3546 =15955

Inspection (12/40) x 3546=10637
Finishing (8/40) x 3546=7091
Canteen -
Maintenance (2/40) x 3546=1773

Maintenance-RM46458
Basis-Maintenance hour

Weaving (300/1100) x 46458=12670

Inspection (200/1100) x 46458=8447
Finishing (500/1100) x 46458=21117
 Canteen (100/1100) x 46458=4223
Maintenance -

Canteen-RM4227
Basis-Number of employees

Weaving (18/40) x 4277=1900

Inspection (12/40) x 4277=1267
Finishing (8/40) x 4277=845
Canteen -
Maintenance (2/40) x 4277=211

Maintenance-RM211
Basis-Maintenance hour

Weaving (300/1100) x 211=58

Inspection (200/1100) x 211=38
Finishing (500/1100) x 211=96
Canteen (100/1100) x 211=19
Maintenance -

Canteen-RM19
Basis-Number of employees

Weaving (18/40) x 19=9

Inspection (12/40) x 19=6
Finishing (8/400) x 19=4
Canteen -
Maintenance (2/40) x 19=1