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WorksheetsManufacturing Costs Quiz
Total questions: 15
Worksheet time: 8mins
Which of the following is considered direct labour in a manufacturing process?
Factory manager
Factory worker operating the machinery
Cleaner
Security guard
Which of the following would be classified as indirect labour?
A factory worker assembling products
A sales representative
A factory supervisor
A machine operator
Which of the following is an example of direct materials in a shoe manufacturing factory?
Shoe polish
Leather used to make the shoes
Factory lighting
Office supplies
Which of the following is considered an indirect material in a manufacturing business?
Steel used to manufacture car doors
Cleaning supplies for the factory
Rubber for making tyres
Fabric used to sew clothes
Which of the following would be included in factory overhead costs?
Wages of factory workers
Depreciation on factory machinery
Cost of raw materials
Advertising expenses
Prime cost in a manufacturing business is made up of which two components?
Direct materials and factory overheads
Direct materials and direct labour
Indirect labour and factory overheads
Fixed costs and variable costs
Which of the following is an example of a variable cost in a manufacturing business?
Factory rent
Raw materials
Factory supervisor salary
Depreciation
Which of the following costs would be classified as a fixed cost?
Cost of raw materials
Wages paid to factory workers
Rent of the factory building
Electricity used in production
Work-in-progress refers to:
Products that have been completed and are ready for sale
Raw materials used in production
Goods that are partially completed but not yet ready for sale
Finished products awaiting dispatch to customers
Which of the following would be classified as a fixed cost?
Wages for the earring makers
Transport to and from the flea market
Rent of the flea market stall
Beads, wire, and stoppers
Using the same scenario, which of the following would be classified as a variable cost?
Rent of the cutting machine
Salary of the salesperson
Beads, wire, and stoppers
Depreciation on factory equipment
Based on the same scenario, if the total production cost was R22,000 (variable costs) and R4,200 (fixed costs), how would you calculate the total production cost per unit for one earring?
Total variable cost ÷ number of units produced
Total production cost ÷ number of units produced
Total fixed cost ÷ number of units produced
Prime cost ÷ total number of employees
Rita and Thembi sell their earrings at a 60% mark-up. If the total cost per earring is R5, what is the selling price of one earring?
R8
R6
R7
R9
Which of the following would not be considered a factory overhead?
Depreciation on the cutting machine
Rent of the flea market stall
Cleaning materials used in the factory
Electricity costs of the factory
If Rita and Thembi sell all 5,000 earrings and each earring is sold at a price of R8, what will their total earnings be?
R30,000
R35,000
R40,000
R45,000
