ACCA Activity-Based Costing — practice questions
16 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice ACCA Activity-Based Costing in the app →Which overhead method applies a different rate in each department but one single rate to every product inside Budgeted factory overhead for the year is $546,000 and budgeted direct labour hours are 3,000. What is the sinA single factory wide rate of $182 per direct labour hour is in use and Job 1 consumes 210 direct labour hoursBudgeted factory overhead for the Cutting Department is $310,000 and its budgeted direct labour hours are 2,00Cutting absorbs overhead at $155 per direct labour hour and Assembly at $236 per direct labour hour. Job 1 useJob 2 uses 65 direct labour hours in Cutting at $155 per hour and 25 direct labour hours in Assembly at $236 pTwo jobs absorb $54,600 of factory overhead in total under a single factory wide rate. What happens to that toIn activity based costing, what is an activity?Budgeted total cost of setups is $1,700 and the budgeted number of setups is 34. What is the activity rate forA dresser batch uses 24 setups at $50, 20 moves at $15, 140 inspections at $25, 85 cleanups at $10, 950 machinA closet batch uses 10 setups at $50, 10 moves at $15, 160 inspections at $25, 60 cleanups at $10, 350 machineJob 1 absorbs $38,220 under a single rate, $38,625 under departmental rates and $37,500 under activity based cA manufacturer budgets $195,000 for fabrication. Golf carts use 1,800 direct labour hours of fabrication and gGolf carts absorb $117,000 of fabrication, $64,000 of assembly, $46,000 of setup and $49,000 of inspection oveA patient stay absorbs $70 of admissions, $3,600 of operating room, $450 of medications, $580 of radiology, $9A manufacturer applies $54,600 of factory overhead to its jobs. Which entry records that application?