CIMA Fundamentals of management accounting BA2 Question # 63 Topic 7 Discussion

CIMA Fundamentals of management accounting BA2 Question # 63 Topic 7 Discussion

BA2 Exam Topic 7 Question 63 Discussion:
Question #: 63
Topic #: 7

Refer to the exhibit.

BA2 Question 63

The indirect costs of a hospital's Radiology Department consists mainly of equipment related costs. Details of the budget for Period 4 are:

The most appropriate overhead absorption rate is:


A.

£6 per machine hour


B.

10% of machine value


C.

400% of radiologists' wages


D.

£3 per staff hour


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