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multiple choice question, choose only one answer A company has decided to use ABC absorption costing for its overheads. It has worked out that there
multiple choice question, choose only one answer
A company has decided to use ABC absorption costing for its overheads. It has worked out that there are three main cost pools, assigned them cost drivers and found out a rate per cost driver Rate per Cost Cost Pool Cost Driver Driver Quality Costs Inspections 4916 Setup Costs Setups 3421 Machine Costs Batches 46 Product Z has 10 inspections, 25 setups and 100 batches. The company produced 10,000 units of Z. What is the overhead absorption cost per unit of Z? Round your answer at the end to 2 decimal places. Select one: O a. 1392.85 O b. 0.84 O c. 13.93 O d. 13.47 When would activity based costing NOT be preferred over traditional costing? (select ONE) Select one: O a. If the overheads are a larger proportion of cost compared to direct cost. o b. If the goods absorb overheads on a similar volume led basis. O c. If the industry is very competitive and there is a constant push on prices and margins. O d. If the goods produced are different and involve different overheads. A company Essex Ltd is looking at its managerial accounts. It has 114749.1 as its profits. It has looked at its accounts and seen total fixed costs are 36873.2 and total variable costs are 16351.2. What is the companies total contribution ()? Select one: O a. 167973.50 O b. 151622.30 O c. 77875.90 O d. 131100.30
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