Assignment Question(s):20)
(Marks
Q. 1 KK Corporation uses the following activity rates from its activity-based costing
to assign overhead costs to products.
(5 Marks)
Activity Cost Pools
Setting Up Batches
Assembling Products
Processing Customer orders
Activity Rate
SAR 83.75 Per Batch
SAR 2.88 per assembly hours
SAR 50.41 per Customer order
Data concerning two products appear below:
Particulars
Product A
Number of Batches
34
Number of Assembly Hours
105
Number of Customer orders
17
Product B
41
824
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, ABC 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?
[5
marks]
Answer..
Q.3 Ahmed 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).
(
5 Marks)
Answer
Q.4 Identify three differences between job order costing and process costing?
(5 Marks)
Answer
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