Sewell Telford Limited manufactures leather armchairs. Which of the following costs would not be classified as a production overhead?

1.   ?    Factory supervisor's salary
2.   ?    Maintenance and repair of wood-turning machinery
3.   ?    Depreciation of factory building
4.   ?    Royalty payable to armchair designer for each armchair produced

Sandell Watkins plc produces custom-built yachts for rich clients. Each yacht is individually commissioned and no two are alike. Which method of accumulating costs is most appropriate for use by this company?

1.   ?    product costing
2.   ?    batch costing
3.   ?    job costing
4.   ?    period costing

Stretton Henscher Limited adopts the following convention in valuing the issues of raw material to its production line: the assumption is made that the raw materials delivered most recently will remain in the warehouse until all the older stocks of materials are used up in production. This valuation convention is commonly referred to as:

1.   ?    FIFO
2.   ?    LILO
3.   ?    LIFO
4.   ?    FILO

Taylor Bashir Limited, see information. What is the value of closing stock per unit, assuming that the company adopts the AVCO valuation convention (to the nearest penny)?

1.   ?    £2.87
2.   ?    £2.96
3.   ?    £2.77
4.   ?    £2.85

Taylor Bashir Limited, see information. What is the value of the transfers to production of metal handles in September (to the nearest penny)?

1.   ?    £473.41
2.   ?    £245.19
3.   ?    £367.60
4.   ?    £258.30

The management accountant of Unsworth Brighton Limited is considering the most appropriate basis for apportioning the overhead of factory building maintenance between the company's three principal production areas. His assistant has presented him with the following list of possible apportionment bases. Which is the most appropriate basis for apportioning this particular overhead?

1.   ?    Machinery repair call outs
2.   ?    Number of employees
3.   ?    Factory floor area
4.   ?    Factory machinery net book value

Usman Hastings & Co Limited manufactures wooden packing crates. Production goes through two departments: cutting and assembly. Machinery related costs of £6850 (maintenance, oil and so on) are to be apportioned between the two departments on the basis of net book value machinery.
All the cutting department machinery was purchased exactly two years ago at a cost of £125 200; it is being depreciated at 20% per year on the reducing balance basis. The assembly department machinery cost £45 000 exactly one year ago; it is being depreciated at 15% per year on the reducing balance basis.
What is the apportionment of the machinery related costs of £6850 between the two departments (to the nearest £)?

1.   ?    Cutting - £5039; Assembly - £1811
2.   ?    Cutting - £4539; Assembly - £2311
3.   ?    Cutting - £4637; Assembly - £2213
4.   ?    Cutting - £4957; Assembly - £1893
   

Overhead absorption is a way of:

1.   ?    classifying costs as direct or indirect
2.   ?    allocating an appropriate portion of overhead costs to cost units
3.   ?    transferring an appropriate portion of overhead costs to cost centres
4.   ?    classifying overhead costs between production and other overheads

See information. An estimated overhead absorption rate for Velma Valhalla based on units of production is (to nearest penny):

1.   ?    £4.30
2.   ?    £9.66
3.   ?    £0.10
4.   ?    £0.23

See information. An estimated overhead absorption rate for Velma Valhalla based on percentage of direct labour cost is (to one decimal place):

1.   ?    44.6%
2.   ?    13.7%
3.   ?    73.0%
4.   ?    137.0%