# A. Calculate pre-determined overhead allocation rate. B. Calculate the applied overhead to job orders. C. Calculate the total cost for each job order and cost per unit. – assignmentcollections.com

Business Finance Assignment Collections – assignmentcollections.com

• ABC Company estimates that it will require 100,000 machine-hour to meet the coming period’s estimated production level in 2018. In addition, the company estimates total fixed manufacturing overhead at SR 300,000, and variable manufacturing overhead costs of SR 3 per machine -hour. (2marks)
• If your fixed monthly utility charge is SR 100, your variable cost is SR1 per kilowatt hour, and your monthly activity level is 3,000 kilowatt hours, what is the amount of your utility bill? (1.0 marks)
• Assume the following hours of maintenance work and the total maintenance costs for the following months: (1. marks)
• following information are extracted from the records of ABC company for 2018: (1marks)

ABC company produced in Feb.2018 two job orders with the following information (Amounts in SR):

 Job no. 1 Job no.2 Direct material 300,000 400,000 Direct labor 150,000 200,000 Actual machine hour used by orders 5,000 8,000 Units produced 5,000 6,000

Required:

• Calculate pre-determined overhead allocation rate.
• Calculate the applied overhead to job orders.
• Calculate the total cost for each job order and cost per unit.
 Month Maintenance hours Total cost July 2,000 20,0000 Aug. 3,000 25,000 Sept. 6,000 40,000 Oct. 4,000 30,000 Nov. 5,000 35,000 Dec.. 7,000 45,000

Required:Calculate fived costs using The High-Low Method

 Revenues 300,000 Variable manufacturing expenses 100,000 Fixed manufacturing expenses 20,000 Variable selling expenses 15,000 Variable administrative expenses 20,000 Fixed selling expenses 25,000 Fixed administrative expenses 30,000

Required: prepare income statement using contribution margin approach.

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