# Accaounting

Topics: Costs, Computer, Cost Pages: 3 (656 words) Published: May 15, 2013
Negeri Oil Palm Bhd.
Based on estimate for 2011;
1 ha = RM 7175000 / 10000 ha
= RM 717.50
FFB = RM 4100000 / 213000 mt
= RM 19.25 / mt
1) For all estates, the overhead costs allocated:
Peak season?
= RM 19.25 x 20450 tonne
= RM 393662.50

Low season?
= RM 19.25 x 14600 tonne
= RM 281050

Monthly overhead costs based on actual FFB harvested?
| Estate A| Estate B|
Peak season| = 5000 tonne x RM 19.25= RM 96250| =2240 tonne x RM 19.25= RM 43120| Low season| =3500 tonne x RM 19.25= RM 67375| = 1560 tonne x RM 19.25= RM 30030|

2) Overhead allocation rate based on annual estimated output:

| Estate A| Estate B|
Annual| = 52700 tonne x RM 19.25= RM 1014475| =22900 tonne x RM 19.25= RM 440825| Monthly| =RM 1014475/12= RM 84539.58| = RM 440825/12=RM 36735.42|

3) Overhead rate computed in Q 1 is higher than the rates computed in Q2. The rate computed in Q1 is based on the estimate of FFB harvested in both peak and low seasons whereby in Q2, the rate is based on the estimate of the annual FFB harvested. The rate in Q2 is preferred in order to cut operation costs.

4)
Estate A| Estate B|
= (717.50 x 2500)+(52700mt x 19.25)+(4 x 2000)= RM 2816225 per annum.| = (717.5 x 1280)+(22900 x 19.25)+(12 x 2000)= RM 1383225 per annum.|

Asia Agro Machinery Bhd
1)
| Forging | Finishing|
Direct Dept Overhead Costs| RM 1992000| RM 2124000|
Number of direct labor hours| 562500| 437500|
Amount of square feet occupied| 90000| 74000|

Work steps:
i- RM 336000 was distributed to Forging, Finishing and Factory administration based on the amount of square footage occupied. ii- The accumulated RM 288000 from Factory administration was distributed to Forging and finishing departments based on the total number of direct labor hours. 2)

a) RM 4116000/1000000 hours = RM 4.12 per direct labor hour b) Forging = RM 1266000 / 63300 hours...

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