Costing MCQs

"Which of the following statements is/are correct? 1. A materials requisition note is used to record the issue of direct material to a specific job. 2. A typical job cost will contain actual costs for material, labour and production overheads, and non –production overheads are often added as a percentage of total production cost. 3. The job costing method can be applied in costing batches"

A job is budgeted to require 3,300 productive hours after incurring 25% idle time. If the total labour cost budgeted for the job is Rs 36,300. What is the labour cost per hour( to the nearest cent)?

A company calculates the prices of jobs by adding overheads to the prime cost and adding 30% to total costs as a profit margin. Job number Y256 was sold for Rs1690 and incurred overheads of Rs 694. What was the prime cost of the job?

State which of the following are the characteristics of service costing. 1. High levels of indirect costs as a proportion of total costs 2. Use of composite cost units 3. Use of equivalent units

Which of the following organisations should not be advised to use service costing?

"Calculate the most appropriate unit cost for a distribution division of a multinational company using the following information. Miles travelled 636,500 Tonnes carried 2,479 Number of drivers 20 Hours worked by drivers 35,520 Tonnes miles carried 375,200 Cost incurred 562,800"

"The following information is available for the W hotel for the latest thirty day period. Number of rooms available per night 40 Percentage occupancy achieved 65% Room servicing cost incurred Rs 3900 The room servicing cost per occupied room-night last period, to the nearest Rs, was:"

A company makes a single product and incurs fixed costs of Rs 30,000 per annum. Variable cost per unit is Rs 5 and each unit sells for Rs 15. Annual sales demand is 7,000 units. The breakeven point is:

A company manufactures a single product for which cost and selling price data are as follows: Selling price per unit - Rs 12 Variable cost per unit - Rs 8 Fixed cost for a period - Rs 98,000 Budgeted sales for a period - 30,000 units The margin of safety, expressed as a percentage of budgeted sales,is: