I’m working on a accounting question and need support to help me learn.
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Assignment Question(s): [10 marks]
Q1.What is the difference between the product cost and period cost? Give some examples for each type [2.5 marks]
Q2.What do you understand by utilization rate? Give an example [2.5 marks]
Q3.The AMS Manufacturing Company uses a job costing system with machine hours as the allocation base for overhead.The company uses normal costing to develop the overhead allocation rate.The following data are available for the latest accounting period:
Estimated fixed factory overhead costSAR 160,000
Estimated machine-hours100,000
Actual fixed factory overhead cost incurredSAR 170,000
Actual machine-hours used110,000
Jobs worked on:
Job No.Machine Hours Used
102012,000
103018,000
104015,000
105010,000
a.Compute the overhead allocation rate. [2 marks]
b.Determine the overhead allocated to job 1040. [2. marks]
c.Determine total over or underapplied overhead at the end of the year[1 mark]
