ACCT301 Saudi Electronic Cost Accounting and Average Fixed Cost Question

The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
Assignments submitted through email will not be accepted.
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Students must mention question number clearly in their answer.
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Submissions without this cover page will NOT be accepted.

Assignment Question(s):

1. Brell Corporation manufactures umbrellas. The cloth used in one umbrella costs $ 15. The corporation rents a manufacturing factory for a monthly rent of $ 275. Prepare a table showing the Total Fixed Cost, Total Variable cost, Total Cost and Average Fixed Cost, Average Variable Cost, and Average Cost for three different levels of production. (No. of units at three different levels can be chosen by you).

(2 Marks)

Answer:

2. A supplier sells company B raw materials at $ 10/unit for the first 500 units, $ 9/unit for the second 500 units and at $8.5/unit for more than 1000 units.

Which type of cost behavior you have in this case? Explain with graphical representation.

(1 Mark)

Answer:

3. Ibrahim Corporation manufactures product A.Following is information for next year’s operations, based on an estimated volume of 40,000 units:

Expected revenues$2,000,000

Unit costs:

Direct materials$7

Direct labor16

Variable overhead6

Fixed manufacturing overhead3

Total$32

Other fixed costs: