Question

Lestari Sdn Bhd operates three production department – Moulding, Machining and Finishing, and one Service Department. The following actual data relates to the following:

Overhead Expenses	Departments
	Moulding	Machining	Finishing	Service
Operating time:      Machine hours	2,500 hours	2,000 hours	2,500 hours	-
Expenses incurred:	RM	RM	RM	RM
Indirect materials	8,500	2,000	2,500	2,000
Indirect wages	10,200	2,500	3,250	3,400
Rent	3,600	1,200	1,200	600
Depreciation	6,300	3,400	1,300	1,400
Overhead Expenses	Departments
	Moulding	Machining	Finishing	Service
Insurance	10,000	2,800	4,000	2,200
Heating and lighting	5,400	580	400	500
Service Wages	10,000	2,100	1,400	1,200

 

The expenses of the service department are apportioned to the production departments on the basis the service wages of those department. All production cost centre overheads are absorbed on a machine hour basis.

The following budgeted data had been prepared for the company:

	Moulding	Machining	Finishing
Budgeted overhead	RM 30,000	RM 25,000	RM 15,000
Budgeted machine hours	1,200	2,000	1,400

you are required:

Prepare an overhead analysis sheet showing the total overheads