Firing Department RM 405,000 Polishing Department Total RM RM Overhead 110,000 515,000 Direct labour hours 28,750 100,000 128,750 Kilh hours 90,000 90,000 Refer to the information for Juju Sdn. Bhd. above. Juju uses departmental overhead rates. In the firing department, overhead is applied on the basis of kiln hours (number of hours spent in the gas-fired kiln). In the polishing department, overhead is applied on the basis of direct labor hours. Actual data for the month of June are as follows: Polishing De partment RM 9,370 Firing Department Total RM RM 43,370 Overhead 34,000 Direct labour hours 2,350 8,600 10,950 Kilh hours 7,400 7,400 Question 2 a) Refer to the information in Question 1 for data. Now, assume that Juju has decided to use a plantwide overhead rate based on the direct labor hours. Required: i) Calculate the predetermined plantwide overhead rate. (Note: Round to the nearest cent.) ii) Calculate the overhead applied to production for the month of Jun. iii) Calculate the overhead variance for the month of Jun.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 1
Use the following information for Questions 1 a) and 1 b):
a) At the beginning of the year, Juju Sdn. Bhd. estimated the following:
Firing Department
Polishing Department
Total
RM
RM
RM
Overhead
405,000
110,000
515,000
Direct labour hours
28,750
100,000
128,750
Kiln hours
90,000
90,000
Refer to the information for Juju Sdn. Bhd. above. Juju uses departmental overhead rates. In
the firing department, overhead is applied on the basis of kiln hours (number of hours spent in
the gas-fired kiln). In the polishing department, overhead is applied on the basis of direct labor
hours. Actual data for the month of June are as follows:
Firing Department
Polishing Department
RM
9,370
Total
RM
RM
43,370
Overhead
34,000
Direct labour hours
2,350
8,600
10,950
Kiln hours
7,400
7,400
Question 2
a) Refer to the information in Question 1 for data. Now, assume that Juju has decided to use
a plantwide overhead rate based on the direct labor hours.
Required:
i) Calculate the predetermined plantwide overhead rate. (Note: Round to the nearest cent.)
ii) Calculate the overhead applied to production for the month of Jun.
iii) Calculate the overhead variance for the month of Jun.
ONLY SOLVE QUESTION 2
Transcribed Image Text:Question 1 Use the following information for Questions 1 a) and 1 b): a) At the beginning of the year, Juju Sdn. Bhd. estimated the following: Firing Department Polishing Department Total RM RM RM Overhead 405,000 110,000 515,000 Direct labour hours 28,750 100,000 128,750 Kiln hours 90,000 90,000 Refer to the information for Juju Sdn. Bhd. above. Juju uses departmental overhead rates. In the firing department, overhead is applied on the basis of kiln hours (number of hours spent in the gas-fired kiln). In the polishing department, overhead is applied on the basis of direct labor hours. Actual data for the month of June are as follows: Firing Department Polishing Department RM 9,370 Total RM RM 43,370 Overhead 34,000 Direct labour hours 2,350 8,600 10,950 Kiln hours 7,400 7,400 Question 2 a) Refer to the information in Question 1 for data. Now, assume that Juju has decided to use a plantwide overhead rate based on the direct labor hours. Required: i) Calculate the predetermined plantwide overhead rate. (Note: Round to the nearest cent.) ii) Calculate the overhead applied to production for the month of Jun. iii) Calculate the overhead variance for the month of Jun. ONLY SOLVE QUESTION 2
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