I’m working on a accounting question and need support to help me learn.
- Students must mention question number clearly in their answer.
- Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
- All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
- Submissions without this cover page will NOT be accepted.
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
Actual fixed factory overhead cost incurredSAR 170,000
Actual machine-hours used110,000
Jobs worked on:
Job No.Machine Hours Used
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]