Question 7

Which of the following is a variable cost in a hand sanitizer producing company?

A.Cost of the plastic bottles

B.Direct labour

C.Cost of sanitizing liquid

D.All of the above

Question 15

Which of the following is typically a job-order costing business?

A.A sugar mill

B.A cement factory

C.Kellog's cornflakes manufacturer

D.ABC dental Clinic

Question 16

In a normal costing system, the manufacturing cost of a job includes:

A.Actual Direct materials, actual direct labour and actual overhead cost

B.Actual prime cost, actual overhead and actual administrative cost.

C.Actual prime cost and allocated overhead

D.Estimated direct materials, estimated direct labour and allocated overhead cost.

Question 17

The predetermined overhead rate equals:

A.Actual overhead cost divided by actual activity level for a period.

B.Actual overhead cost divided by estimated activity level for a period.

C.Estimated overhead cost divided by actual activity level for a period.

D.Estimated overhead cost divided by estimated activity level for a period.