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1 markCost Classification and Manufacturing Accounts

CSEC Principles of Accounts · 2022 · Paper 2 · Question 5(b)(i)

The assembly cost centre operates on a labour hour basis and the finishing cost centre operates on a machine hour basis.

State the formula used to calculate the overhead absorption rate (OAR).

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Other parts of this question

  1. 5(a)Calculate the total indirect costs for EACH cost centre (Assembly and Finishing).[2 marks]
  2. 5(b)(ii)Calculate the overhead absorption rate (OAR) for EACH cost centre.[6 marks]
  3. 5(c)Calculate the total cost of producing ONE Scalextric toy car, showing direct materials calculations, production hours calculations applying the OARs, and…[7 marks]
  4. 5(d)(i)Define the term 'mark-up pricing'.[1 mark]
  5. 5(d)(ii)Calculate the total dollar value of the mark-up on ONE Scalextric toy car.[1 mark]
  6. 5(d)(iii)Calculate the selling price of ONE Scalextric toy car.[2 marks]

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