[ORDER SOLUTION] Overhead Allocation Rate

• 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.• 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).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 SAR 160,000Estimated machine-hours 100,000Actual fixed factory overhead cost incurred SAR 170,000Actual machine-hours used 110,000Jobs worked on:Job No. Machine Hours Used1020 12,0001030 18,0001040 15,0001050 10,000a. 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]

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