A factory produces three products: A, B and C. The direct costs per unit and the number of units produced are:Indirect costs are allocated using direct costs as a basis.If the total indirect costs are $27,500 what is the indirect cost per unit allocated to product B?
A. $11.22
B. $4.68
C. $14.03
D. $8.87
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A company makes a product where all the direct costs are of equal importance.Which of the following would be the best basis on which to calculate the absorption rate for this product?
A. Labour hours
B. Material cost
C. Prime cost
D. Machine hours
On what basis would a business apportion the following costs?Employee restaurant
A. Floor area
B. Number of employees
Rent
A. Floor area
B. Number of employees
Which of the following is an example of a normal loss?
A. Machine down time
B. Expected evaporation in the process
C. Staff holiday
D. Sale of scrap material