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BA2 Exam Dumps : Fundamentals of management accounting

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Fundamentals of management accounting Questions and Answers

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Question 1

A company absorbs production overhead using a direct labour hour rate. Data for the latest period are as follows:

What is the overhead absorption rate per direct labour hour? Give your answer to one decimal place.

Options:

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Question 2

A company uses standard absorption costing. Budgeted and actual data for the latest period are as follows.

What was the production overhead absorption rate per unit?

Options:

A.

$21

B.

$27

C.

$35

D.

$29

Question 3

Which of the following is a relevant cost?

Options:

A.

A sunk cost

B.

A committed cost

C.

An incremental cost

D.

A historical cost

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