a) At the beginning of the year, Juju Sdn. Bhd. estimated the following: Total Firing Department RM Polis hing Department RM RM Overhead 405,000 110,000 515,000 128,750 90,000 100,000 28,750 90,000 Direct labour hours Kin hours 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 Total RM RM RM Overhead 9,370 8,600 34,000 43,370 Direct labour hours 2,350 10,950 Kiln hours 7.400 7,400 Required: i) Calculate the predetermined overhead rates for the firing and polishing departments. ii) Calculate the overhead applied to production in each department for the month of June. iii) Identify whether overhead variance for each department has been overapplied or underapplied?
a) At the beginning of the year, Juju Sdn. Bhd. estimated the following: Total Firing Department RM Polis hing Department RM RM Overhead 405,000 110,000 515,000 128,750 90,000 100,000 28,750 90,000 Direct labour hours Kin hours 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 Total RM RM RM Overhead 9,370 8,600 34,000 43,370 Direct labour hours 2,350 10,950 Kiln hours 7.400 7,400 Required: i) Calculate the predetermined overhead rates for the firing and polishing departments. ii) Calculate the overhead applied to production in each department for the month of June. iii) Identify whether overhead variance for each department has been overapplied or underapplied?
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 8PB: Queen Bees Honey, Inc., estimated its annual overhead to be $110,000 and based its predetermined...
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