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The sum of indirect material cost, indirect labour cost and indirect expenses is termed as Overheads. True If overhead absorbed i.e. overheads charged to units during the period is more than the overhead incurred, it is said that the overheads are ________. Over-absorbed The ________ variance is the difference between the actual variable overhead incurred and the standard variable overhead charged to production. Total variable overhead Warehousing cost is an item of ________ Distribution overheads Indirect Cost is termed as ________. Overhead Overhead absorption rate will be different at different capacity levels. True Direct labour hour rate method of absorption of overheads is suitable where most of the production is done by using machines. False The sum of indirect material cost, indirect labour cost and indirect expenses is termed as factory cost. False Management accounting is concerned with the following activities : Decision making , Safeguarding assets , Planning and controlling Match the following Fixed overheads Variability wise classification Abnormal overheads Normality wise classification Indirect Material Element wise classification Administration overheads Function wise classification Machine hour rate is calculated as (amount of overheads to be absorbed)/(labour hours required for production) False This is an example of semi variable overheads. electricity Element wise classification of overheads takes the form of indirect material , indirect labour , indirect expenses Fixed overheads normally arise as a result of policy and are largely ________ in nature at the ________ level of the management Uncontrollable, lower Factory overheads consist of all overhead costs incurred from the stage of procurement of material till the production of finished goods. True The sum of indirect material cost, indirect labour cost and indirect expenses is termed as factory cost. False Linking overhead to a cost unit is known as overhead absorption. True Select the items which may be classified as selling and distribution overheads.

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Delivery van expenses , Rent of finished goods warehouse, Sales research expenses Overhead absorption rate will be different at different capacity levels. True Calculate the machine hour rate. The amount of overhead pertaining to June, 2004 to be apportioned is Rs.170010/-. The machine cannot work without an operator. During the month June, 2004 the machine operator has been paid for 5,670 hours. Rs.29.98 Select the various methods adopted for treatment of under or over absorbed overheads Use of supplementary rates , Carrying over the amount to remaining period ,Writing off to the Costing Profit and Loss Account Linking overhead to a cost unit is known as overhead absorption. True Linking overhead to a cost unit is known as overhead absorption. True Linking overhead to a cost unit is known as overhead absorption. True Linking overhead to a cost unit is known as overhead absorption. True Linking overhead to a cost unit is known as overhead absorption. True Linking overhead to a cost unit is known as overhead absorption. True Linking overhead to a cost unit is known as overhead absorption. True Linking overhead to a cost unit is known as overhead absorption. True