Introduction to Managerial Accounting and Job Order Costing
binayad1
H.W1.docxInstructions – PLEASE READ THEM CAREFULLY
· The Two Chapters Have Been Attached To Know The Context (You Should Read It).
· Should be Three Pages not including the references page and cover page.
· Make your work clear and well presented, marks may be reduced for poor presentation.
· Embed course material concepts, principles, and theories (requires supporting citations) along with at least two scholarly, peer-reviewed reference in supporting your answers.
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Assignment Question(s):
Q1. What is the difference between the product cost and period cost? Give some examples for each type
Q2. What do you understand by utilization rate? Give an example
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 cost |
SAR 160,000 |
|
Estimated machine-hours |
100,000 |
|
Actual fixed factory overhead cost incurred |
SAR 170,000 |
|
Actual machine-hours used |
110,000 |
Jobs worked on:
|
Job No. |
Machine Hours Used |
|
1020 |
12,000 |
|
1030 |
18,000 |
|
1040 |
15,000 |
|
1050 |
10,000 |
a. Compute the overhead allocation rate.
b. Determine the overhead allocated to job 1040.
c. Determine total over or underapplied overhead at the end of the year
