1. Which of the following is an example of a factory overhead cost? ABCD repair and maintenance cost on the General Manager office factory heating and lighting cost A. B. C. D. insurance premiums on salespersons' automobiles The chairman's salary (1 mark) 2. Overhead apportionment is A the allotment of the whole item of cost to the cost centres or cost units. B. the overheads are charged directly to the cost centres which caused the overhead to incur C. 3. 4. 5. D. the overheads are charged directly to the cost centres where the exact amount of overheads is known. the allotment to two or more cost centres of proportions of the common items of cost on the estimated basis of benefit received. An overhead absorption rate is used to A. Share out common costs over benefiting cost canters B. ABCD Find the total overheads for a cost centre Charge overheads to products D. Control overheads The reason for under absorption of overhead are as follows except for ABCD A. The actual hours worked at is less than the budgeted hours The actual overhead cost is more than the budgeted overhead The actual overhead cost is less than the budgeted overhead Seasonal fluctuation in overhead B. C. D. (1 mark) (1 mark) (1 mark) The process of distribution of overheads allotted to a particular department or cost center over the units produced is called A. Allocation B. C. D. Apportionment Absorption Departmentalization (1 mark) 6. Brave Bro Sdn Bhd uses standard absorption costing and absorbs production overheads on the basis on direct labour hours. The following budgeted and actual information applies to the previous accounting period: