discussion Managerial Accounting

• 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.
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• 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

Estimated machine-hours100,000

Actual fixed factory overhead cost incurredSAR 170,000

Actual machine-hours used110,000

Jobs worked on:

Job No.Machine Hours Used

102012,000

103018,000

104015,000

105010,000

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]