The costs of the maintenance department and canteen need to be reapportioned to Production department 1 and Production department 2. The total costs of each department are as follows:The canteen caters for employees of the maintenance department at a cost of $32,700. The remainder is split between Production department 1 ($35,000) and Production department 2 ($57,300). The maintenance department costs are split 2:1 between Production department 1 and Production department 2. What is the total overhead cost charged to Production department 1?
A. $206,800
B. $93,200
C. $107,700
D. $106,800
查看答案
Which of the following would be the most appropriate basis of overhead absorption for an organisation that provides telephone support for IT questions?
A. Number of clients
B. Labour hours
C. Machine hours
D. Staff numbers
The overhead absorption rate for a business has been calculated as $5.50 per unit, based on estimated production of 11,000 units. Actual production is 11,250 units.Assuming actual overheads are as budgeted, what is the under- or over-absorption of overhead costs?
A. $1,375 under-absorption
B. $1,375 over-absorption
C. $550 under-absorption
D. $550 over-absorption
Which of the following is the definition of marginal cost?
A. The cost of making one more unit of product
B. The total cost of one unit of product
C. Direct costs of making a product
D. Variable and fixed costs of making a product
Under-absorption costing it is possible to manipulate the profit of the business by manufacturing more or fewer units than are needed for sales and standard inventory levels.What impact does manufacturing too many units have on the accounts under absorption costing?
A. Profit rises, inventory rises
B. Profit rises, inventory falls
C. Profit falls, inventory rises
D. Profit falls, inventory falls