Q1. ABC Corporation applies job order costing system and the information drawn from its costing records as follows :

Particular	Job 100	Job 200	Total
Direct material per unit	50 SR	75 SR	-
Direct labour rate per hour	15 SR	20 SR	-
Direct labour hour per unit	2	4	-
Yearly estimated direct labour hour	-	-	20,000 hours
Yearly estimated fixes overhead	-	-	100,000 SR
Overhead variable cost per direct hour	-	-	5 SR
Yearly estimated machine hours			5,000 hours

During January 2021, the corporation produced and sold 3000 units from job order no. 100 and 3500 units from job order no. 200 respectively. The corporation uses normal costing system that charge applied overhead to jobs.

Required:

1. Compute the pre determine overhead using direct labour hour as accost driver.
2. Compute total product costs for the two jobs.
3. Pass journal entries to record cost flow, namely direct material, direct labour and overhead to work in process inventory.

Q2. Analyse the following costs into product costs and period costs using check mark in the column

Costs	Product costs	Period costs
Direct labour
Direct material
Depreciation on manufacturing equipment
Advertising expense
Research and development expense
Wages for administration
Depreciation for vehicles used in sales
Factory utilities.
Rent of the production building
Salaries of maintenance personnel.
Office depreciation
Interest expense on a company's debt

Q3. The following information drawn from ABC Corporation about maintenance costs in 2020.

Month	Total maintenance costs (SR)	Maintenance hours
July	75,000	5,000
August	81,000	5,500
September	63,000	4,000
October	51,000	3,000
November	87,000	6,000
December	84,600	5,800

Required:

1. Estimate the cost function for ABC using the high- low method.
2. Predict maintenance costs if maintenance hours are 7,000 hours in January 2021.