Provide numerical examples of a Direct Material Budget for the second quarter (April to June) by considering a manufacturing company operating in Saudi Arabia as a sample study. (2marks)

XYZ Industries Co. decided to allocate Human Resource department costs based on the number of employees in each department and Information Technology costs based on the number of machine-hours in each department. (2marks)

            Required:

Give a numerical example for the four departments, given the table below, (the numerical information should be appropriate as per the table given as a reference.

Support Departments                                                    Operating Departments        TOTAL

( Human Resource, Information Technology)     ( Hot Rolled Hollow Steel? , cold Rolled Hollow Steel )

Total department cost

Number of employees

Number of machine hours

b- Then based on your given information, use The Direct method to allocate support department costs.

Allocate cost:

Human Resource

Information Technology

TOTAL

For what types of products is the physical output method appropriate? Give suitable and real example that should support your answer. ch9 (1mark)

pur-new-sol

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