assignment acct 301 2

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  • 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.
  • 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.
  • Q 1Give a numerical example of non routine decision, Determine the relevant costs for this non routine decision and discuss the analysis (quantitative and qualitative) required to make the decision?

    Q 2 Which types of companies would most likely use a process costing system? Provide examples of two Saudi Compagnies.

    Explain the methods with which the cost per unit will be calculated for this type of companies.Explain how the different items of inventory will be evaluated?

    (1.5 Marks)

    Q 3KLM Compagny has two departments, Assembly and Testing. You are given the following information about the costs of 5 activities that occur at the manufacturing plant monthly:

    Activity Total Costs Total number of units of Cost Driver

    Material handling SAR200,000 400,000 parts

    Supervision of direct labor 126,000 90 employees

    Janitorial and cleaning 200,000 4,000 hours

    Machining 300,000 7,000 machine hours

    Total costs SAR826,000

    The above activities are used by the two departments as follows:

    Assembly Testing

    Material handling 200,000 parts 200,000 parts

    Supervision of direct labor 40 employees 50 employees

    Time spent cleaning 2,000 hours 2,000 hours

    Number of machine hours 5,000 machine hours 2,000 machine hours

    a. How much of the material handling cost will be allocated to Assembly?

    b. What is the ABC allocation rate for supervision of direct labor?

    ( 2Marks)

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