Machine hours are used as a basis for overhead absorption in a production cost centre. The following data is available for June:What was the overhead absorption rate (OAR) in June?
A. $10.31
B. $10.70
C. $11.08
D. $11.50
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For which of the following is a profit centre manager normally responsible?
A. Costs only
B. Revenues only
Costs and revenues only
D. Costs, revenues and investment
A business has estimated its budgeted overheads and levels of activity as follows:From the information given, what should be the basis for overhead absorption?Production department 1
A. Machine hours
B. Labour hours
Production department 2
A. Machine hours
B. Labour hours
Which TWO of the following are characteristics of service costing?
A. Consistency of each instance of service
B. High proportion of indirect costs to total costs
C. Use of equivalent units
D. Cost units are often intangible