Calculate the overhead cost per unit

Assignment Help Managerial Accounting

Reference no: EM133742575

Question 1. Assume yourself to be a cost manager of ARAMCO and you are in the task ofCost Classifications.Explain how the following costs would help you as cost manager to make decision.
1. Product Vs Period Cost
2. Prime Vs Conversion Cost
3. Committed Vs Discretionary Cost

Question 2:A fresh graduate employed as an accountantof a manufacturing company and is working on over applied and under applied overheads.
Explain how you would assist him/her in computing over applied and under applied overheads. Give numerical examples

Question 3. a. Latif Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows:

Required:
1. Compute POHR per activity (Round off to two decimal places)
2. Calculate the overhead cost per unit, if the company produces 1,000 units of product A and 500 units of product B.

Question 4. Explain Equivalent Units of Production and its computation using weighted average method and FIFO method.

Question 5a. ‘Cost Structure and Profit Stability'is one of the most import strategy of a corporations. Explain how managers, maintain cost structure for stability in profit during both good and bad years.

Question 5b.The following is Allison Corporation's contribution format income statement for last month:
Account title Amount in SR
Sales 850,000
Variable Cost 250,000
Contribution Margin 600,000
Fixed Expenses 450,000
Net operating Income 150,000
The company has no beginning or ending inventories. The company produced and sold 15,000 units last month.

Required:
i. Compute Margin of Safety.
ii. What is the company's degree of operating leverage?

Reference no: EM133742575

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