Quiz 7 CTB Units 1 to 6

Packing cost for shipping of products is charged under

• Production overhead

• Raw material cost

• Marketing overhead

• Administration overhead

Sarah baked muffins for sale at a charity show. Each muffin cost $2 to produce. If she intends to sell 200 muffins for a total collection of $720, what is the mark-up percentage?

• 44.4%

• 50%

• 80%

• 55.6%

In a factory, overtime was scheduled as a result of a power failure earlier in the day. In this case the overtime premium incurred is

• indirect wages

• direct wages

• administration overhead

• basic wages

Clocked hours include normal hours

• and idle hours only

• and overtime hours only

• idle hours and overtime hours

• less idle hours

Calculate total direct expense from the table.

• $2,500

• $3,500

• $3,700

• $4,700

Compute total direct wages.

• $37,000

• $40,200

• $43,000

• none of the above

This is not part of Administrative Overhead.

• Managing director's fees

• Legal fees

• Depreciation on signboard

• Audit fees

Overheads consist of the following except

• factory maintenance

• manufacturing wages

• indirect wages

• office supplies

Identify indirect materials.

• leather used in making a pair of shoes

• silver used in making a diamond ring

• metal used in making needles

• wool used in making carpets

Mr Briyani sells chicken briyani online and deliveries are made through a food delivery company. Cost incurred for the previous month is given in the table. Compute prime cost.

• $7,980

• $9,960

• $9,800

• none of the above

Answer explanation