|Perfect Number of Pages to Order||5-10 Pages|
Discussion Assignment for ACT500 Managerial Accounting
[100 marks] Assignment Question(s):
Salah Surf Boards creates one-of-a-kind boards for competitive surfers. Customers’ requests for materials and the amount of direct work necessary for the finishing process determine the size of the boards.
For 20×5, the following costs are estimated:
The total number of surfboards is 3,000.
45,000 hours of direct labor
The cost of direct materials was SAR 175,000.
SAR 900,000 in direct labor costs
SAR 675,000 was spent on overhead.
Actual costs for 20×5 were as follows:
The total number of surfboards is 3,300.
46,300 hours of direct work
SAR 185,000 for direct materials
SAR 850,000 for direct labor
SAR 664,000 in overhead
a. Explain why this organization should use task costing rather than process costing. [25 points]
b. Salah employs a standard costing system. Overheard is distributed according to direct labor hours. Calculate the cost of making a surfboard with SAR 150 in direct materials and 36 hours of direct labor. [25 points]
c. How much overhead had been assigned to production by the conclusion of 20×5? [25 points]
d. Is the overhead applied too much or too little, and by how much? [20 points]
a. Assume that any overhead that is over or underutilized is added to the cost of products sold. Prepare the adjustment’s journal entry. [5 points]