28\ Which one of the following statements is not true about marginal costing compared to absorption costing?

a\ It includes fixed manufacturing cost in contribution calculation

b\ All of these

c\ It include all manufacturing costs in gross profit calculation

d\ It includes fixed manufacturing cost in gross profit calculation

29\ Direct material used in production OMR 50,000: direct wages incurred OMR 30,000: direct expenses charged OMR 15,000. The business incurred the total overhead cost of OMR 85,000. The direct labor hours worked was 900 hours.

Calculate the overhead absorption rate on the basis of prime cost:

a\ 89 %

b\ 106 %

c\ 134 %

d\ 147 %

30\ Which one of the following methods offers bonus on the basis of saving in cost of operation?

a\ Scanlon plan

b\ Budgeted bonus plan

c\ Priest man bonus plan

d \ Townes gain sharing plan

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