Multiple Choice
Component ZVA sells for £200. This selling price is calculated by adding 25% to the total absorption cost of each component. Direct costs of production make up 60% of the total absorption cost of Component ZVA. Overhead is absorbed into each Component ZVA at the rate of £8 per labour hour. How many labour hours does each Component ZVA take to produce?
A) 7.5
B) 8
C) 10
D) 12
Correct Answer:
Verified
Related Questions
Q1: Knowledge of costs = control
Q2: The costs of an organization are the
Q3: Only the direct costs of providing a
Q5: Production overheads at Zurich Manufacturing total up
