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WorksheetsCMA I - Overhead Cost
Total questions: 10
Worksheet time: 6mins
What do you understand by the term “blanket recovery rate”?
Single recovery rate for single product.
Single recovery rate for the whole factory.
Different recovery rates for different products.
Different recovery rates for different departments.
Which of the following would be the most appropriate basis for reapportioning the cost of personnel services in a factory?
Floor space occupied.
Hours worked by direct operatives.
Book value of plant
Number of employees.
An example of a production overhead would be:
Material
Rent
Labour cost
Supervisory cost
In cinema halls, composite cost unit is _____.
A seat per show
Cost of screening
Salary of staff
Rent of cinema hall
Over-absorbed overheads occur when:
Absorbed overheads exceed actual overheads
Absorbed overheads exceed budgeted overheads
Actual overheads exceed absorbed overheads
Actual overheads exceed budgeted overheads
Which of the following would be the most appropriate basis for apportioning machinery insurance costs?
Number of machines
Floor area
Value of machinery
Operating hours of the machinery
A direct labour hour basis is most appropriate in which of the following environment?
Machine intensive
Labour intensive
When all units produced are identical
When labour rates are high
Muji Co absorbs overheads on machine hours. In a period, actual machine hours were 22,345, actual overheads were RM496,500 and there was over absorption of RM64,375.
What was the budgeted OAR per machine hour (to the nearest RM)?
(a)
The total amount of factory overhead represents:
Allocated costs
Apportioned costs
Share of service departmental costs
ALL
Blanket overhead rates are not appropriate in the following circumstances:
There is more than 1 department
Jobs do not spend an equal amount of time in each department
There is more than 1 department & the jobs do not spend an equal amount of time in each department
None
