XYZ Industries Co.

1. 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)
2. 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:
   a) 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

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

Sample Solution

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