Im Bhd has two production departments Im and Ran and two service departments, Stores and General Services. The company has budgeted the following costs for the forthcoming period. RM '000' Machine maintenance 100 Equipment depreciation 58 Plant insurance 58 Electricity 75 Canteen costs 24 Rent 50 Supervision 120 The following information is also available: Im Ran Stores General Floor area (Meter sq) 10,000 10,000 2,500 2,500 No. of Employees 40 20 10 10 Plant book value (RM) 100,000 100,000 25,000 25,000 Equipment depreciation per annum 40% 40% 10% 10% Machine hours 60,000 40,000 Direct material usage (RM) 200,000 300,000 Re-apportionment of services department into production departments is as to be follows: Im Ran Stores 60% 40% General 40% 60% Overheads are absorbed in both production departments on the basis of machine hours. Required: (a) Prepare an overhead analysis sheet for the period, using suitable basis of apportionment.

Im Bhd has two production departments Im and Ran and two service departments, Stores and General Services. The company has budgeted the following costs for the forthcoming period. RM '000' Machine maintenance 100 Equipment depreciation 58 Plant insurance 58 Electricity 75 Canteen costs 24 Rent 50 Supervision 120 The following information is also available: Im Ran Stores General Floor area (Meter sq) 10,000 10,000 2,500 2,500 No. of Employees 40 20 10 10 Plant book value (RM) 100,000 100,000 25,000 25,000 Equipment depreciation per annum 40% 40% 10% 10% Machine hours 60,000 40,000 Direct material usage (RM) 200,000 300,000 Re-apportionment of services department into production departments is as to be follows: Im Ran Stores 60% 40% General 40% 60% Overheads are absorbed in both production departments on the basis of machine hours. Required: (a) Prepare an overhead analysis sheet for the period, using suitable basis of apportionment.

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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