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Assignment Question(s): Marks 10

Q.1 .Complete the following table. ( 2 Marks )


Total Fixed Cost

Total Variable Cost

Total Cost









Q.2 Discuss the differences between the Job order costing and Process costing? (2 Marks)


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)


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.


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?


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