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Jaya Sdn Bhd has three production departments called Sector A, B, C and two
service deparrments, which are Inspection and Maintenance. The budgeted costs for
the month are as follows:
Sector A Sector B Sector C Inspection Maintenance
RM RM RM RM RM
Direct
material &
labour
4,591 7,070 6,722 5,500 2,800
Indirect
material &
labour
1,960 2,595 2,760 1,860 1,200
Allocated
overhead 770 900 650 450 300
The budgeted overhead costs related to each department are as follows:
RM
Rental 5,600
Insurance on machine 1,500
Utilities 2,800
Depreciation on machine 9,000
Sector A and B are machine oriented, while Sector C is labour oriented. The process
of allocation, apportionment and re-apportionment of overheads between production
and service department are using the following basis:
Sector
A
Sector
B
Sector
C
Inspectio
n
Maintenance
Floor area (m²) 1,500 1,200 1,800 500 600
Machine value 56,000 60,000 4,000 – –
Machine hours 320 350 60 – 20
Direct labour hours 150 150 280 – –
Inspection
re-apportionment ratio 50% 30% 10% – 10%
Maintenance
re-apportionment ratio 50% 25% 25% – –
Required:
a. Prepare an overhead analysis sheet showing allocation, apportionment and
re-apportionment of overhead costs

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