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

Accounting

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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 answered 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): [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 cost Estimated machine-hours SAR 160,000 100,000 Actual fixed factory overhead cost incurred Actual machine-hours used SAR 170,000 110,000 1 Jobs worked on: Job No. Machine Hours Used 1020 12,000 1030 18,000 1040 15,000 1050 10,000 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] 2