Product cost and period cost

Q1. What is the difference between the product cost and period cost? Give some examples for each type

Q2. What do you understand by utilization rate? Give an example

Q3. The AMS Manufacturing Company uses a job costing system with machine hours as the allocation base for overhead. The company uses normal costing to develop the overhead allocation rate. The following data are available for the latest accounting period:

Estimated fixed factory overhead cost SAR 160,000

Estimated machine-hours 100,000

Actual fixed factory overhead cost incurred SAR 170,000

Actual machine-hours used 110,000

Jobs worked on:

Job No. Machine Hours Used

1020 12,000

1030 18,000

1040 15,000

1050 10,000

a. Compute the overhead allocation rate.

b. Determine the overhead allocated to job 1040.

c. Determine total over or underapplied overhead at the end of the year

Your well-written paper should meet the following requirements:

• Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
• All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
• Using websites as a reference is not acceptable, it must be books or scientific papers.
• Should be Using at least 3 references.
• Use Saudi Electronic University academic writing standards and APA style (7th ed.) guidelines