Reference no: EM132933539
Problem 1: The following are the features of service costing EXCEPT?
A High levels of direct costs as a proportion of total costs
B Intangibility of output
C Use of composite cost units
D Can be used for internal services as well as external services
The information below was extracted from Bacso paint fort the year ended june 2020
Budgeted production overhead Ksh.180, 000
Actual production overhead Ksh.180, 000
Budgeted machine hours 60,000
Actual machine hours 55,000
Problem 2: Which of the following statements is correct?
A There was no under or over absorption of overhead
B Overhead was Ksh.33,636 over absorbed
C Overhead was Ksh.45,500 over absorbed
D Overhead was Ksh.45,500 under absorbed
Problem 3: Which of the following best describes a controllable cost?
A. A cost which arises from a decision already taken, which cannot, in the short run, be hanged.
B. A cost for which the behaviour pattern can be easily analysed to facilitate valid budgetary control comparisons.
C. A cost which can be influenced by its budget holder.
D. A specific cost of an activity or business which would be avoided if the activity or business did not exist.
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