1.

A company uses a predetermined overhead recovery rate based on machine hours. Budgeted factory overhead for a year amounted to 720 000, but actual factory overhead incurred was 738 000. During the year, the company absorbed 714 000 of factory overhead on 119 000 actual machine hours. What was the company's budgeted level of machine hours for the year? A 116098 B 119000 C 120000 D 123 000

2.

A company absorbs overheads on machine hours which were budgeted at 11 250 with overheads of 258 750. Actual results were 10 980 hours with overheads of 254 692. Overheads were: A B C D under-absorbed by 215 2 over-absorbed by 4058 under-absorbed by 4058 over-absorbed by 215 2

3. The following data are to be used for sub-questions (i) and (ii) below: Budgeted labour hours Budgeted overheads Actual labour hours Actual overheads (i) A B C D 8500 148 750 7928 146 200

Based on the data given above, what is the labour hour overhead absorption rate? 17.50 per hour 17.20 per hour 18.44 per hour 18.76 per hour

(ii) Based on the data given above, what is the amount of overhead under/over-absorbed? A 2550 under-absorbed B 2529 over-absorbed C 2550 over-absorbed D 7460 under-absorbed

4. Canberra has established the following information regarding fixed overheads for the coming month: Budgeted information: Fixed overheads 180 000 Labour hours 3 000 Machine hours 10 000 Units of production 5 000 Actual fixed costs for the last month were 160 000. Canberra produces many different products using highly automated manufacturing processes and absorbs overheads on the most appropriate basis. What will be the pre-determined overhead absorption rate? A 16 B 18 C 36 D 60 5. An engineering firm operates a job costing system. Production overhead is absorbed at the rate of $8.50 per machine hour. In order to allow for non-production overhead costs and profit, a mark up of 60% of prime cost is added to the production cost when preparing price estimates. The estimated requirements of job number 808 are as follows: Direct materials $10 650 Direct labour $3 260 Machine hours 140 The estimated price notified to the customer for job number 808 will be A $22 256 B $22 851 C $23 446 D $24 160