Manufacturing Overhead

What is Overhead?

• Indirect Material

• Indirect Labour

• Indirect Expenses

• All of the above

Overhead can be classified as follows, EXCEPT...

• Manufacturing

• Prime Costs

• Selling and Distribution

• Administration

An overhead costs of rental, is best be apportioned according to ...

• Square meter area

• Number of employees

• Horse power (hp)

• Value of plant (RM)

An overhead costs of insurance on plant, is best be apportioned according to ...

• Square meter area

• Number of employees

• Horse power (hp)

• Value of plant (RM)

Which of the following is the first step in developing an Overhead Absorption Rate (OHAR)?

• Re-apportionment

• Apportionment

• Allocation

• Overhead Absorption Rate

What is manufacturing overhead?

• Overhead that incurred during production in a certain period of time

• Overhead incurred by manufacturer

• All manufacturing cost other than Direct Material and Direct Labour cost

• Cost of product will be constant at a certain period

Depreciation on office furniture is considered to be a -

• Administrative costs

• Selling and distribution costs

• Overhead costs

• Negative asset

Factory insurance is considered to be a -

• Overhead costs

• Prime costs

• Administrative costs

• Operating income

Customs duties increase -

• Raw material costs

• Overhead costs

• Selling and distribution costs

• Sales

Prime costs are made up of -

• Raw materials costs + direct labour costs

• Direct labour costs + Indirect labour costs

• Factory overheads + administrative costs

• Selling and distribution costs + administrative costs