MATS Lesson 4 - Starter

Which of the below are cost centres?

• Materials

• Production

• Selling & Distribution

• Labour

• Admin & Finance

Which list below could be used as cost centres

for a business that makes windows?

• Materials, Labour, Overheads

• Frame Construction, Glazing, Admin, Distribution

• Direct costs, Indirect costs

• Prime costs, Manufacturing Overheads, Non-Production Overheads

Which of the following are overheads for a chocolate factory?

• Milk

• Coco

• Building Insurance

• Service on the machines

• Rent for the factory

,Product A total cost centre overheads are £153,000 and direct labour hours are 31,875. What is the absorption rate per direct labour hour?

• £2.50

• £4.80

• £48.00

• £0.25

The absorption rate per machine hour is £12.00 and it takes 20 minutes to make 1 unit. How much is the cost for the direct materials?

• £6.00

• £2.00

• £12.00

• £4.00

Which of the below are direct overheads?

• Tracked Machine Electricity

• Admin Expenses

• Machine Servicing

• Factory Rent

• Factory Insurance

What is the absorption rate for the direct labour hours? To 2 decimal places.

• £8.46

• £0.12

• £1.18

• £8.47

What is the absorption rate for the direct machine hours? To 2 decimal places.

• £1.36

• £13.58

• £0.73

• £8.47