ACCA Exam Practice

ACCA MA1 exam questions (production overheads)

Ma1 is the first step in ACCA exams, In this article you will practice ACCA MA1 exam questions.

So let’s start.

ACCA MA1 exam questions

  1. What is the term that is used to describe the process of charging an entire expense to a single cost center?
  1. Allocations
  2. Apportionment
  3. Absorption
  4. Re-apportionment

2. What term describe the process of sharing an expense amongst a number of cost center?

  1. Allocation
  2. Apportionment
  3. Absorption
  4. Re-apportionment

3. A factory has 2 production cost center, assembly and finishing, as well as 2 service cost center, maintenance and store. The rent and rates for the next period is anticipated to be $40000. The floor are occupied by each of the cost center is

  1. Assembly 2000 m
  2. Finishing 1400 m
  3. Stores 1000 m
  4. Maintenance 600 m

What amount should be apportioned to the stores cost center for rent and rates?

  1. Nil
  2. $8000
  3. $11200
  4. $16000

4. In factory the store cost center overheads are to be reapportioned to the three production cost center.

What is the most suitable basis for reapportionment?

  1. Number of employees
  2. Values of machines
  3. Number of material requisitions
  4. Machine hours

5. One of the product that a factory makes spends three machine hours in the assembly department and two labor hours in the packaging department. The overhead absorption rates for each department are as follow.

  1. Assembly $2.66 per machine hour
  2. Packaging $1.75 per labor hour

What is the total amount of overhead to be absorbed in to the cost of the product.

  1. $4.41
  2. $8.82
  3. $10.57
  4. $11.48


  1. (1)
  2. (2)
  3. (2) (rent and rates $40000/5000 sq m*1000 sq m= $8000)
  4. (3)
  5. (4) (assembly 3*$2.66=7.98, Packaging 2*1.75=3.50 (11.48).

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