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.
Assignment Question(s): (Marks 5)
Q1. DCT Corporation are in the manufacturing of soft drinks and produces three products X, Y and Z. During the year 2014, the joint costs of processing the three products were SAR 450,000. The following are the information related with production and sales value: (1 Mark)
Product Units Sales Value at Split-Off Separable Costs Selling Price
X 675,000 SAR 25 per unit SAR 11.00 per unit SAR 75 per unit
Y 525,000 SAR 21 per unit SAR 7.00 per unit SAR 68 per unit
Z 300,000 SAR 17 per unit SAR 7.00 per unit SAR 52 per unit
Allocate the joint costs to each product using the physical output method.
Answer:
Q2. What are “Non-routine Operating Decisions?” Examine any one non-routine operating decision with suitable example and discuss what quantitative and qualitative factors should be considered in making such decision? (1.5 Mark)
Answer:
Q3. ABC Ltd. is preparing a budget for 2015. Following are the information related with budget preparation: (1.5 Mark)
Budgeted selling price per unit = $150 per unit
Total fixed costs = $80,000
Variable costs = $50 per unit
Required:
Prepare flexible budget for 1,200, 1,400, 1,600 and 1,800 units.
Answer:
Q4. Explain with suitable examples why the support department costs are allocated to operating department? Briefly explain any one method of such allocation with numerical examples. (1 Mark)
Answer:
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