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9.8 Which of the following are acceptable bases for absorbing production overheads ? (i) Direct labour hous (ii) Machine hous (iii) As a percentage of the prime cost (iv) per unit

A. Method (i),(ii),(iii) and (iv)
B. Method (i) and (ii) only
C. Method (iii) and (iv) only
D. Method (i),(ii) or (iii) only

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9.2 The overhead absorption rate for product T is $4 per machine hour. Each unit of requires 3 machine hours. Inventories of product T last period were: UnitsOpening inventory 2,400Closing inventory 2,700Compared with the marginal costing profit for the period, the absorption costing profit for product T will be:

A. $3,600 higher
B. $1,200 higher
C. $1,200 lower
D. $3,600 lower

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9.1 The following data is available for period 9. Opening inventory 10,000 units Closing inventory 8,000 units Absorption costing profit $280,000 The profit for period 9 using marginal costing would be :

A. Impossible to calculate without more information
B. $282,000
C. $280,000
D. $278,000

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8.8 Which of the following would be the most appropriate basis for apportioning machinery insurance costs to cost centers within a factory ?

A. The value of the machinery in each cost centre
B. The number of machine in each cost centre
C. The floor area occupied be the machinery in each cost centre
D. The operating hours of the machinery in each cost centre

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Over-absorbed overheads occur when

Absorbed overheads exceed actual overheads
B. Absorbed overheads exceed budgeted overheads
C. Actual overheads exceed absorbed overheads
D. Actual overheads exceed budgeted overheads

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9.8 Which of the following are acceptable bases for absorbing production overheads ? (i) Direct labour hous (ii) Machine hous (iii) As a percentage of the prime cost (iv) per unit

A. Method (i),(ii),(iii) and (iv) B. Method (i) and (ii) only C. Method (iii) and (iv) only D. Method (i),(ii) or (iii) only

9.1 The following data is available for period 9. Opening inventory 10,000 units Closing inventory 8,000 units Absorption costing profit $280,000 The profit for period 9 using marginal costing would be :

8.8 Which of the following would be the most appropriate basis for apportioning machinery insurance costs to cost centers within a factory ?

Over-absorbed overheads occur when

A. Method (i),(ii),(iii) and (iv)
B. Method (i) and (ii) only
C. Method (iii) and (iv) only
D. Method (i),(ii) or (iii) only