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Question: oar example questions the following data applies to a cost...

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OAR Example Questions The following data applies to a cost centre in the month of January 2010 Total overhead £10000, Labour Hours = 1500 , Total direct wages = £5400, Total material cost = £1200, Total machine hours = 200, Total units produced 10 In February 2010 Job #54 was completed using 8 machine hours, materials costing £72, and 30 person-hours costing £150 A single unit was produced and the selling price for the unit was £800. Use this data to answer the two questions: Identify the correct answer: To the Identify the incorrect answer: A proper overhead absorption rate nearest pound, the cost of the unit made could be £6.67 per person-hour 185% of the wage bill £1000 per unit 800% on materials costs in February, using an OAR based on person-hours, is: 1. £400 2. £422 3. £500 1. 3. 4, 4. £822
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