MATS Lesson 5 - Starter

Which are a direct cost of a chocolate factory?

• Delivery drivers wages

• Wages of employees making chocolate bars

• Milk

• Factory Insurance

• Packaging

Sort the costs of a pizza makers.

• Cheese

• Direct

• Employee who delivers pizzas

• Direct

• Dough

• Indirect

• Employee who makes pizzas

• Indirect

• Pizza advertising

• Direct

What is the total prime cost?​ (a)  

• 74,000
• 97,000
• 63,000
• 35,000
• 39,000
• 102,000

What is a prime cost?

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​ (a)   inventory plus ​ (b)   minus ​ (c)   equals​ (d)   inventory

• Opening
• Purchases
• Issues
• Closing
• Materials
• Labour
• Direct
• Indirect

Direct materials are £3,000

Direct labour is £5,000

Overheads are £4,300

Units produced are 2,000

What is the price per batch?

• £4.00

• £6.15

• £4.65

• £6.51

• £7.15