Question 2: Assume Mr. Anwar, one of your friends completed his graduation in Engineering and wanted to start a small manufacturing company near Ibri, and he wants to get some idea on: i) Variable cost and semi-variable cost, and ii) Fixed cost and Semi-fixed cost. Being the accounting specialization student how will you explain him about classification of cost? Explain along with suitable examples?

Question 3: The production department of Dhariya Chemicals LLC supplies you the following data for the year ending 31" December 2019. OMR. 30, 000 OMR 40, 000 8, 000 10,000 OMR. 8,000 Material used Direct wages Labour hours worked Hours of machine operation Overhead cost You are required to calculate overheads absorption rate by using the following methods: a) Percentage of Direct material cost b) Percentage of Direct wages cost c) Direct labour hour rate d) Machine hour rate Marks)

Question 4: Raw material B is used in production as follows: Maximum usage Normal usage Minimum usage Re-ordering Quantity Re-order period (Lead Time) 300 units per week 200 units per week 100 units per week 120 unit 16 to 24 weeks Calculate for Raw material B: (a) Re-order Stock Level (b) Minimum Stock Level (c) Average stock level; and (d) Maximum stock level Marks)

Question 5: (a) Surf Excel Industry Co. LLC used OMR 60,000 of materials in its production process for the month of May, 2019. Direct wages paid by the company OMR 25,000, overhead expenses of the company is OMR 50,000. Ascertain the Percentage of Factory Overheads on the basis of Prime cost.

b) (i) Deduce how marginal costing system is usful in determination of profit? Illustrate with suitable example? (ii) From the following information ascertain the amount of Sales of Mubarak Co., under marginal costing system: (2.5 Marks) Contribution OMR 150,000 OMR 135,000 Variable cost