Perusahaan Iqmal Afif Bhd

Overhead Cost

Total

Overhead Analysis Sheet

Production Department
Basis of
Apportionment
Assembly
Finishing

Service Department
Stores
Maintenance

Allocation:
Indirect Material
Indirect Labour

4,900 Direct Allocation

6,550 Direct Allocation

2,000
3,500

1,500
2,200

600
500

800
350

Apportionment:
Ins. on building
Power
Electricity
Rent and Rates
Depr. of Plant
Maintenance cost

9,500 Area (sq. feet)

4,500 Horse power
6,800 Kilowatts Hour
8,000 Area (sq. feet)
3,500 Plant values
2,000 Maintenance hrs.

4,000
1,688
2,871
3,368
1,969
1,154
20,550

3,000
2,813
2,267
2,526
1,531
846
16,683

2,000

500

907
1,684

756
421

5,691

2,827

3,557

2,134

-5,691

1,631
25,737

1,196
20,013

Reapportionment:
Store
Maintenace
Total

5,691 Mat. requisitions

2,826.61 Maintenance hrs.

i) OAR
(Departmental rate)

25,737
9,500

20,013
4,500

2.71

4.45

(2,827)
0

Total
Assembly
7,800 Labour hours
2,500
16,000 Machine hours
9,500
160,000 Plant values
90,000
19,000 Area (sq. feet)
8,000
8,000 Horse power
3,000
22,500 Kilowatts hour
9,500
200 Mat. requisitions
125
13,000 Maintenance hrs.
7,500
ii) OAR
(Blanket rate)

= Total Production Overhead

Total Machine hours
=

45,750
16,000

2.86

Finishing
4,500
6,500
70,000
6,000
5,000
7,500
75
5,500

Stores
Maintenance
300
500

4,000

1,000

3,000

2,500
40

9,500
4,500
6,800
8,000
3,500
2,000

Repeated Method

Perusahaan Iqmal Afif Bhd

Overhead Cost

Total

Overhead Analysis Sheet

Production Department
Basis of
Apportionment
Assembly
Finishing

Allocation:
Indirect Material
Indirect Labour

4,900 Direct Allocation

6,550 Direct Allocation

Apportionment:
Ins. on building
Power
Electricity
Rent and Rates
Depr. of Plant
Maintenance cost

9,500 Area (sq. feet)

4,500 Horse power
6,800 Area (sq. feet)
8,000 Area (sq. feet)
3,500 Plant values
2,000 Maintenance hrs.

Reapportionment:
Store
Total
Maintenace
Total
Store
Total
Maintenace
Total
OAR

Service Department
Stores
Maintenance

2,000
3,500

1,500
2,200

600
500

800
350

4,000
1,687.50
2,863.16
3,368.42
1,968.75
1,111.11
20,498.94

3,000
2,812.50
2,147.37
2,526.32
1,531.25
814.81
16,532.25

2,000

500

1,431.58
1,684.21

357.89
421.05

74.07
6,289.86

2,428.95

6,289.86 Mat. requisitions

3275.97
23,774.91

1965.58
18,497.83

-6289.86
0.00

1048.31
3,477.26

3,477.26 Maintenance hrs.

1931.81
25,706.72

1416.66
19,914.49

128.79
128.79

-3,477.26
0.00

128.79 Mat. requisitions

67.08
25,773.80

40.25
19,954.74

-128.79
0.00

21.46
21.46

12.38
25,786.18

9.08
19,963.82

0.00
0.00

-21.46
0.00

21.46 Maintenance hrs.

25,786.18
9,500

19,963.82
4,500

2.71

4.44

Repeated Method

Total
Assembly
7,800 Labour hours
2,500
16,000 Machine hours
9,500
160,000 Plant values
90,000
19,000 Area (sq. feet)
8,000
8,000 Horse power
3,000
22,500 Kilowatts hour
9,500
240 Mat. requisitions
125
13,500 Maintenance hrs.
7,500

Finishing
4,500
6,500
70,000
6,000
5,000
7,500
75
5,500

Stores
Maintenance
300
500

4,000

1,000

3,000

2,500
40

500

a) Syarikat Fahim Sdn. Bhd.

Overhead Cost

Total

Overhead Analysis Sheet

Production Department
Basis of
Apportionment
Mixing
Machining

Allocation:
Allocated overhead 47,000 Direct allocation

15,000

25,000

Apportionment:
Ins. on building
Water & electricity

15,000 Floor area (sq.m)

12,000 Floor area (sq.m)

5,000
4,000
24,000

6,538
5,231
36,769

Reapportionment:
Canteen

5,962 No. of employees

3,669

2,293

Personnel
7,269 No. of employees
TOTAL OVERHEAD

4473
32,142

2796
41,858

b) OAR

=
=

32,142.01
4,000
8.04

41,857.99
3,000
13.95

Total
19,500 Floor area (sq.m)
65
80 No. of employees
4,500 Machine hours
5,800 Labour hours

Mixing
6,500
40
1,500
4,000

Machining
8,500
25
3,000
1,800

Actual overhead
Actual Machine hours
Actual Labour hours

Mixing
19500
1700
3800

Machining
31000
3500
2000

c)

Mixing
Machining
Prod. Overhead absorped Labour hours Machine hours

Actual hours x preOAR

=3,800 x 8.04 =3500 x 13.95

=

OVER
UNDER

30,535

48,834

Prod. Overhead incurred

Actual Overhead

19,500

31,000

Over absorbed

11,035

17,834

If production overhead absorped > production overhead incurred

If production overhead absorped < production overhead incurred

ine hours

Service Department
Canteen
Personnel
2,500

4,500

1,923
1,538
5,962

1,538 15000
1,231 12000
7,269

-5,962
0

Canteen
2,500
10

5,962

-7,269
0

7269

Personnel CanteenPersonnel
2,000
5
65
65

0 x 13.95

verhead incurred
verhead incurred

a) Syarikat Fahim Sdn. Bhd.

Overhead Cost

Total

Overhead Analysis Sheet

Production Department
Basis of
Apportionment
Mixing
Machining

Allocation:
Allocated overhead 47,000 Direct allocation

Service Department
Canteen
Personnel

15,000

25,000

2,500

4,500

15,000 Floor area (sq.m)

12,000 Floor area (sq.m)

5,000
4,000
24,000

6,538
5,231
36,769

1,923
1,538
5,962

1,538
1,231
7,269

5,962 No. of employees

3,407
27,407

2,129
38,898

-5,962
0

426
7,695

Personnel
Total

7,695 No. of employees

4104
31,511

2565
41,463

1026
1,026

-7,695
0

Canteen
Total

1,026 No. of employees

586
32,097

366
41,830

-1,026
0

73
73

Personnel
Total

73 No. of employees

39
32,136

24
41,854

10
10

-73
0

Canteen
Total

10 No. of employees

6.01
32,142.01

3.76
41,857.99

Apportionment:
Ins. on building
Water & electricity
Reapportionment:
Canteen
Total

b) OAR

32,142.01

41,857.99

4,000
8.04

3,000
13.95

Total
19,500 Floor area (sq.m)
65
80 No. of employees
4,500 Machine hours
5,800 Labour hours

Mixing
6,500
40
1,500
4,000

Machining
8,500
25
3,000
1,800

Actual overhead
Actual Machine hours
Actual Labour hours

Mixing
19500
1700
3800

Machining
31000
3500
2000

c)

Canteen
Personnel
2,500
2,000
10
5

Mixing
Machining
Prod. Overhead absorped Labour hours Machine hours
Actual hours x preOAR
=3,800 x 8.03 =3500 x 13.95
COMPARE

OVER
UNDER

30,535

48,834

Prod. Overhead incurred

Actual Overhead

19,500

31,000

Over absorbed

11,035

17,834

If production overhead absorped > production overhead incurred

If production overhead absorped < production overhead incurred

15000
12000

5962

7695

1026

73

CanteenPersonnel
70

75