Q.1 .Complete the following table. ( 2 Marks )
|
Output |
Total Fixed Cost |
Total Variable Cost |
Total Cost |
|
100 |
|||
|
150 |
75,000 |
||
|
200 |
10,000 |
||
|
250 |
|||
|
300 |
Answer:
Q.2 Discuss the differences between the Job order costing and Process costing? (2 Marks)
Answer
Q3 Abdulkrim Company manufactures a product A. The company estimates the cost function for the total costs. The cost driver is number of units. The following informations were collected:
Month Units Total Costs
January 3,560 $242,400
February 3,800 $252,000
March 4,000 $260,000
April 3,600 $244,000
May 3,200 $228,000
June 3,040 $221,600
Compute a cost function using the high-low method. (2 Mark)
Answer:
Q4 Whether a company uses process costing or job-order costing depends on its industry. A number of companies in different industries are listed below: ( 2 Marks)
1. Dairy farm
2. Custom boat builder
3. Food caterer that supplies food for wedding and other special events
4. Advertising agency
5. Coal mining company
6. Cattle feedlot that fattens cattle prior to slaughter
Required: For each company, indicate whether the company is most likely to use job-order costing or process costing.
Answer
Q.5 S Corporation uses the following activity rates from its activity-based costing system to assign overhead costs to products. (2 Marks)
Data concerning two products appear below:
How much overhead cost would be assigned to each of the two products using the company’s activity-based costing system?
Answer
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