QUESTION 4 (a)

No. Overhead costs Basis

i. rent & rates of office Floor area
ii. power expenses kilowatt/machine hour or horse power
iii. insurance on factory floor area
iv. supervisor's salary number of workers/employees

QUESTION 4 (b)
CANON CREEK SDN.BHD.
OVERHEAD ANALYSIS SHEET FOR THE YEAR 2019

PRODUCTION COST CENTER

BASIS TOTAL COST MEASURING CUTTING
OVERHEAD COST RM RM RM
INDIRECT MATERIAL DIRECT ALLOCATION 250,000 90,000 65,000

INDIRECT LABOUR DIRECT ALLOCATION 180,000 80,000 30,000

EQUIPMENT DEPRECIATION BV OF EQUIPMENT 30,000 30K X ( 30K/150K) 30K X (65K/150K)

(30K:65K:45K:8K:2k=150K) 6,000 13,000

FACTORY INSURANCE FLOOR AREA (SQ.FEET) 15,000 15K X (2K/6K) 15K X (1.2K/6K)
(2K:1.2K:1.2K:1K:0.6K=6K) 5,000 3,000

SUPERVISION NO. OF EMPLOYEE 40,000 40K X (8/25) 40K X (7/25)

(8:7:5:2:3=25) 12,800 11,200

UTILITIES FLOOR AREA (SQ. FEET) 50,000 50K X (2K/6K) 50K X (1.2K/6K)
(2K:1.2K:1.2K:1K:0.6K=6K) 16,667 10,000

TOTAL PRODUCTION OVERHEAD 565,000 210,467 132,200

RE-APPORTIONMENT:

STORE MATERIAL HANDLING (%) 85,633 85,633 X (30/80) 85,633 X (20/80)

(30:20:30:0:0=80) 32,112 21,408

CANTEEN NO. OF EMPLOYEE 21,700 21,700 X (8/22) 21,700 X (7/22)

(8:7:5:2:0=22) 7,891 6,905

STORE MATERIAL HANDLING (%) 1,973 1973 X (30/80) 1973 X (20/80)

(30:20:30:0:0=80) 740 493

BUDGETED TOTAL PRODUCTION OVERHEAD 565,000 251,210 161,006

QUESTION 4 (c)
MEASURING CUTTING
Budgeted total production overhead 251,210 161,006
Budgeted units of basis used:
direct labour hours (DLH) 6,500
machine hours (MH) 3,200

25,1210/6,500 161,006/3,200

38.65 50.31
OAR (RM) PER DLH PER MH

QUESTION 4 (d)
MEASURING CUTTING
RM38.65 X 5,200 DLH RM50.31 X 3,100 MH
OVERHEAD ABSORBED OAR X ACTUAL UNIT OF BASIS USED
200,980 155,961

ACTUAL TOTAL OVERHEAD 190,500 160,000

DIFFERENCE (RM) 10,480 -4039

OVER OR UNDER ABSORPTION OF OVERHEAD OVER UNDER

19

OST CENTER SERVICE COST CENTER

ASSEMBLING STORE CANTEEN
RM RM RM
55,000 40,000 -

30,000 30,000 10,000

30K X (45K/150K) 30K X (8K/150K) 30K X (45K/150K)

9,000 1,600 400

15K X (1.2K/6K) 15K X (1K/6K) 15K X (0.6K/6K)

3,000 2,500 1,500

40K X (5/25) 40K X (2/25) 40K X (3/25)

8,000 3,200 4,800

50K X (1.2K/6K) 50K X (1K/6K) 50K X (0.6K/6K)

10,000 8,333 5,000

115,000 85,633 21,700

 85,633 X (30/80) 0 -
32,112 -85633 -

21,700 X (5/22) 21,700 X (2/22) 0

4,932 1,973 -21700

1973 X (30/80) 0
740 -1973 0

152,784 - -

ASSEMBLING
152,784

3,300

152,784/3,300

46.30
PER MH

ASSEMBLING
RM46.30 X 2,900 MH
134,270

135,000
 -730

UNDER