ACC116: Earmax Bhd. is a company that involves in the business of manufacturing speakers for a home theatre company: Introduction to Cost Accounting Assignment, UiTM, Malaysia

QUESTION 1

Earmax Bhd. is a company that involves in the business of manufacturing speakers for a home theatre company. The company has three production centres namely Assembly, Machining and Finishing Department and two service centres namely Canteen and Store. The basis used for Assembly and
Machining Department is machine hours and for Finishing Department, the basis use is direct labour hours.

The budgeted overhead for the year ended 30th June 2022 is as follows:

Additional information related to the allocation of overhead is as follows:

QUESTION 2

Modern Co produces three products, Spike A, Spike B and Spike C, all made from the same material. Currently, the company employs traditional absorption overhead costings in determining overhead for its products. The company is now considering an activity-based costing system to improve the profitability of its business. The information for Spike A, Spike B and Spike C provided is as follows.

Answer

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