ACCT 322 SEU Total Fixed Cost Questions

College of Administration and Finance SciencesAssignment (1)
Deadline: Saturday 22/07/2023 @ 23:59
Course Name: Managerial Accounting Student’s Name:
Course Code: ACCT322
Student’s ID Number:
Semester: Summer
CRN:
Academic Year: 1444 H
For Instructor’s Use only
Instructor’s Name:
Students’ Grade:
/20
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
• 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 answers 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.
College of Administration and Finance Sciences
Assignment Question(s):
(Marks 20)
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
Data concerning two products appear below:
Particulars
Number of Batches
Number of Assembly Hours
Number of Customer orders
Activity Rate
SAR 83.75 Per Batch
SAR 2.88 per assembly hours
SAR 50.41 per Customer order
Product A
34
105
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
College of Administration and Finance Sciences
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?
Answer..
[5 marks]
College of Administration and Finance Sciences
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
College of Administration and Finance Sciences
Q.4 Identify three differences between job order costing and process costing?
(5 Marks)
Answer