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Question: 1-(3 points) If you have these 2 constraints: 0.6R+4D £ 180,000 Machine Hour constraint 3R+5D £ 150,000 Direct Labor Hour constraint Required: a Draw a graph showing the possible production plans for this company. b- From your opinion where is the feasible area of the production plan. Explain your answer.Question no 2 A housekeeping support department budgets its costs at SR 40,000 per month plus SR 12 / hour. For January the following were the estimated and actual hours provided by the housekeeping support department to 3 operating department. Estimated hours spent cleaning Actual hours spent cleaning Department A 1600 1500 Department B 1400 1600 Department C 2000 1800 Total 5000 4900 Required:A-What is the support department’s allocation rate if estimated activity is the allocation base?B What is the support department’s allocation rate if actual activity is the allocation base? CList one advantages and one disadvantage for each types of allocation rate. (3 points)3- Al Yamamah Steel Industries Co. uses the step method for allocating the costs of its service departments to operating departments. The company has two support departments (Human Resource and Information Technology) and two operating departments (Hot Rolled Hollow Steel and Cold Rolled Hollow Steel).Al Yamamah Steel Industries Co. decided to allocate Human Resource department costs based on the number of employees in each department and Information Technology costs based on the number of machine hours in each department. (4 Points).Required: a- Give a numerical example for the four departments as a given information. Support Departments Operating Departments TOTAL Human Resource Information Technology Hot Rolled Hollow Steel cold Rolled Hollow Steel Total department cost Number of employees Number of machine hours b- Then based on your given information, use the step-down method to allocate support department costs.Allocate cost: Human Resource Information Technology TOTAL Answers will be varied among students
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Assignment 3 Cost accounting
Last Date for Submission 23rd March 2019
You are required to work in this assignment individually.
Student
……………………………..
Name
Assignment
3
Student ID
……………… CRN ………
Marks
Course
Cost Accounting
Course Code
Uploading
End of week 10
Submission
Date
Sat 16/03/2019
Date
……/ 10 Points
ACCT 301
End week 11
Sat 23/03/2019
Instructions:


Students must include these details (Name, Student ID, CRN, Date of submission)

Do NOT remove the questions in the answer papers. But write your answers below each question.

Answer the ALL questions.

Assignments should be submitted in MS Word format

Font should be Times New Roman with 14 points.

You are required to work in this assignment individually.

You should submit the assignment via the Blackboard.

Students who submit assignments after deadline, will get ZERO.
If you engaged in plagiarism, you will get ZERO marks in the assignment or course.
Question: 1-
(3 points)
If you have these 2 constraints:
0.6R+4D  180,000 Machine Hour constraint
3R+5D  150,000 Direct Labor Hour constraint
Required:
a Draw a graph showing the possible production plans for this company.
b- From your opinion where is the feasible area of the production plan. Explain your answer.
Answer:
Question no 2
A housekeeping support department budgets its costs at SR 40,000 per month plus SR 12 / hour.
For January the following were the estimated and actual hours provided by the housekeeping
support department to 3 operating department.
Estimated hours spent cleaning
Actual
hours
spent
cleaning
Department A
1600
1500
Department B
1400
1600
Department C
2000
1800
Total
5000
4900
Required:
A-
What is the support department’s allocation rate if estimated activity is the allocation
base?
B
What is the support department’s allocation rate if actual activity is the allocation base?
C
List one advantages and one disadvantage for each types of allocation rate. (3 points)
3- Al Yamamah Steel Industries Co. uses the step method for allocating the costs of its service
departments to operating departments. The company has two support departments (Human
Resource and Information Technology) and two operating departments (Hot Rolled Hollow
Steel and Cold Rolled Hollow Steel).
Al Yamamah Steel Industries Co. decided to allocate Human Resource department costs based
on the number of employees in each department and Information Technology costs based on the
number of machine hours in each department.
(4 Points).
Required:
a- Give a numerical example for the four departments as a given information.
Support Departments
Operating Departments
Human
Information Hot Rolled
Resource Technology Hollow Steel
cold Rolled
Hollow Steel
TOTAL
Total department cost
Number of employees
Number of machine hours
b- Then based on your given information, use the step-down method to allocate support
department costs.
Allocate cost:
Human Resource
Information Technology
TOTAL
Answers will be varied among students

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