Overhead is actually the total of:

Related MCQs

• Variable overhead is overhead that increases as more production work is done. Total variable overhead expenditure therefore depends on the volume of production. Variable overhead is usually calculated as an amount for each direct labour hour worked.
• Which of the following procedure is incorrect for attributing overhead costs to cost units? I. Collecting production overhead costs by item II. Establishing cost centres III. Allocating and apportioning overhead costs to cost centres IV. Apportioning service cost centre costs to production cost centres V. Absorbing production cost centre costs into cost units
• Overhead absorption is the process whereby overhead costs allocated and apportioned to production cost centres are added to unit, job or batch costs.
• Overhead absorption is sometimes called overhead recovery.
• The absorption rate may be calculated by the fraction: • Total overhead costs • Total of absorption basis.
• . The total amount of factory overhead represents:
• The total overhead costs of each production centre should be:
• An example of a production overhead would be:
• Which of the following cost is also known as overhead cost or on cost:
• The overhead cost for a particular job =