Tiong Nam Sdn Bhd is a manufacturer of plastic dustbins for industrial use. The factory in Seremban has three…

Tiong Nam Sdn Bhd is a manufacturer of plastic dustbins for industrial use. The factory in Seremban has three…

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Tiong Nam Sdn Bhd is a manufacturer of plastic dustbins for industrial use. The factory in
Seremban has three (3) production departments and two (2) service departments. The cost
accountant has budgeted the overhead cost for the coming year as follows:
Depreciation of factory equipment
Line Production Supervisor’s salaries
Rental of factory building.
Insurance on factory plant and equipment
Telephone and internet charged for the factory
Electricity charges for the factory
Total budgeted overhead cost
The three (3) production departments are the Heating, Mixing and Molding Department and the
two service departments are Engineering Services and Store. The following are additional
information and data for the departments:
Floor area occupied (Sq
meters)
Value of factory Plant &
Equipment (RM)
Direct Labor hours budgeted
Labor rates per hour
Overhead Cost for each
department:
Indirect labor (RM)
Indirect Materials
Maintenance of equipment
Eng. Service Department
costs apportioned:
Store Department costs
apportioned:
Production Department
Heating
3,750
30,000
4,000
4.75
1,500
1,200
800
50%
20%
Mixing
2,250
12,500
2,250
4.375
850
750
525
25%
30%
Molding
750
10,000
1,250
4.25
900
300
300
25%
RM
22,500
30,000
16,000
7,500
4,000
8,000
88,000
50%
Service Departments
Store
Eng.
Service
750
5,000
3.75
200
600
200
500
2,500
3.75
250
325
175 Required
1. Prepare a worksheet (statement) showing the overhead cost budgeted for each department,
showing the basis of apportionment used. (For the worksheet, round up all decimal
places)
(13 marks)
2. Calculate the suitable overhead rates for each of the Production Departments. (Round up
to two (2) decimal places)
Part B
Two specialized plastic bins were specifically manufactured for one of their customers. The
direct cost and related data are as follows:
Direct material (RM)
Direct labor:
(6 marks)
Job 375
192.50
25 hours-Heating Dept
18 hours-Mixing Dept
12 hours-Molding Dept
Job 376
135.00
20 hours-Heating Dept
13 hours-Mixing Dept
17 hours – Molding Dept
Required
1. Calculate the total cost of for Job 375 and Job 376 (Round up to two (2) decimal places).
(8 marks)
2. If the firm quotes prices to customers that require profit of 25% on the selling price,
calculate the quoted selling price for each job. (Round up to two (2) decimal places).
(3 marks)

Expert Answer:

Answer rating: 100% (QA)

Part A Worksheet Statement Showing the Overhead Cost Budgeted for Each Department Department Basis o
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