August 26, 2022

Identify three differences between job order costing and process costing?

Instructions – PLEASE READ THEM CAREFULLY

The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.

Assignments submitted through email will not be accepted.

Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.

Students must mention question number clearly in their answer.

Late submission will NOT be accepted.

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 answers 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): (Marks 5)

Q. 1 KK Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. (1.5 Marks)

Activity Cost Pools	Activity Rate
Setting Up Batches	SAR 83.75 Per Batch
Assembling Products	SAR 2.88 per assembly hours
Processing Customer orders	SAR 50.41 per Customer order

Data concerning two products appear below:

Particulars	Product A	Product B
Number of Batches	34	41
Number of Assembly Hours	105	824
Number of Customer orders	17	38

Required:

a. How much overhead cost would be assigned to Product A using the company’s activity-based costing system? Show your work!

b. How much overhead cost would be assigned to Product B using the company’s activity-based costing system? Show your work!

Answer

Q.2 In August 2021, MAK Co. incurred total cost of SAR 29,000 and made 3,100 units. In November 2021, it produced 1,600 units and total costs were SAR 20,000. What are the total fixed cost and average variable cost? [1 marks]

Answer..

Q.3 Abrar Corporation manufactures umbrellas. The cloth used in one umbrella costs $ 15. The corporation rents a manufacturing factory for a monthly rent of $ 275. Prepare a table showing the Total Fixed Cost, Total Variable cost, Total Cost and Average Fixed Cost, Average Variable Cost, and Average Cost for three different levels of production. (No. of units at three different levels can be chosen by you).