MCQ questions

01. Which of the following would probably be the appropriate allocation base for allocating overhead in manufacturing of traditional gardening tools, almost manual produced? (4 Marks) A Machine-hours. B Power consumption. C Direct Labour-hou rs. D Machine setups. 02. For a printing company, the cost of paper is classified as a: (4 Marks) Period cost. Direct manufacturing labour cost. Direct material cost. Manufacturing overhead cost. DOW} Q3. A company manufactures a range of umbrellas that change colour when they get wet. They sell them for $25 each. Its variable costs are f12 per umbrella and total fixed costs $100,000 per year. What is its break-even point? (4 Marks) A 7,692 umbrellas. B 7,693 umbrellas. C 8,333 umbrellas. 8,334 umbrellas