Cost Allocation and Percentage Calculations Quiz
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Questions and Answers

Which formula is used to calculate the overhead rate based on the allocation percentage of direct material cost and factory overheads?

  • Overhead rate = Factory overheads : Allocation Percentage of direct material cost
  • Factory overheads : Allocation Percentage of direct material cost = Overhead rate
  • Allocation Percentage of direct material cost : Overhead rate = Factory overheads (correct)
  • Factory overheads = Allocation Percentage of direct material cost : Overhead rate

    • What is the formula for calculating the machine hour rate?

  • Machine hour rate : PREPARATION OF COST SHEET PREPARATION OF COST SHEET (CONTD.)
  • PREPARATION OF COST SHEET PREPARATION OF COST SHEET (CONTD.) : Machine hour rate
  • Machine hour rate = PREPARATION OF COST SHEET PREPARATION OF COST SHEET (CONTD.) (correct)
  • PREPARATION OF COST SHEET PREPARATION OF COST SHEET (CONTD.) = Machine hour rate

    • What is the formula for calculating the percentage of direct labour cost based on the percentage on prime cost?

  • Percentage on prime cost : * 100 : Percentage of direct labour cost
  • Percentage of direct labour cost : Percentage on prime cost : * 100
  • Percentage of direct labour cost : * 100 : Percentage on prime cost
  • Percentage on prime cost : Percentage of direct labour cost : * 100 (correct)

    • Which of the following components is included in the calculation of labour turnover ratio?

    <p>Remuneration</p> Signup and view all the answers

    Which category of labour includes workmen, production line supervisors, and transportation of material?

    <p>Direct labour</p> Signup and view all the answers

    What is the purpose of distinguishing between direct and indirect labour?

    <p>To introduce incentive schemes</p> Signup and view all the answers

    What is the main reason for calculating labour turnover?

    <p>To calculate labour efficiency</p> Signup and view all the answers

    Which category of labour includes foremen, inspectors, and accountants?

    <p>Indirect labour</p> Signup and view all the answers

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