Sealing Department

PART A Discuss what re-apportionment is and explain possible method of reapportionment. You are required to include possible examples for all method available. You can include pictures or diagrams if necessary.

PART B HegenZ Sdn Bhd produces several products, which pass through the two-production departments in its factory. These two departments are concerned with Filling and Sealing operations. There are two other service departments, maintenance and canteen, in the factory. Budgeted direct labour hours were 13,100 for filling department, and 10,250 for sealing department. Service department overheads are apportioned to other departments as follows:Maintenance Filling 57% Sealing 30% Canteen 13% Canteen Filling 60% Sealing 40% The budgeted overheads relating to the company’s HegenZ Sdn Bhd for recent year are as follows: RM RM Depreciation of machinery 54,000 Rent 12,000 Light and heat 20,000 Insurance on building 52,400 supervision 60,000 Indirect labour costs: Filling 50,620 Sealing 28,460 Maintenance 25,800 Canteen 18,000

The following information is also available: Department NBV of Square meters Kilowatts hours Number of machinery occupied employees Filling 50,200 1,800 3,000 33 Sealing 43,900 1,500 2,000 27 Maintenance 32,600 1,200 4,200 12 Canteen 23,400 1,000 800 8 Total 150,100 5,500 10,000 80 Actual data for production department during the year are as follow: Overhead costs (RM) Direct labour hours Filling 200,230 20,100 Sealing 152,120 14,620 Required:

a. Prepare the overhead analysis sheet and re-apportion the services department costs to production department.

b. Find the POHR for Filling department and Sealing department using direct labour hours and calculate over or under absorption for each department.