- Provide numerical examples of a Direct Material Budget for the second quarter (April to June) by considering a manufacturing company operating in Saudi Arabia as a sample study. (2marks)
- XYZ 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. (2marks)
Required:
- Give a numerical example for the four departments, given the table below, (the numerical information should be appropriate as per the table given as a reference.
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 Direct method to allocate support department costs.
Allocate cost:
Human Resource
Information Technology
TOTAL
- For what types of products is the physical output method appropriate? Give suitable and real example that should support your answer. ch9 (1mark)
