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CIMA Exam CIMAPRA17-BA2-1 Topic 4 Question 82 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam
Question #: 82
Topic #: 4
[All CIMAPRA17-BA2-1 Questions]

Refer to the exhibit.

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:

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Suggested Answer: D

Contribute your Thoughts:

Eugene
3 days ago
This question seems straightforward. I think the correct answer is B) 10% of machine value, as the indirect costs are mainly equipment-related.
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Pansy
4 days ago
I disagree, I believe it should be 6 per machine hour because equipment related costs are the main indirect costs.
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Ettie
7 days ago
I think the most appropriate overhead absorption rate is 10% of machine value.
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