Ma1 is the first step in the ACCA journey, In this article, you will practice ACCA MA1 exam questions. So let’s start with our first question about production overhead.

ACCA MA1 Exam Questions Of Production Overhead

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 describes the process of sharing an expense amongst a number of cost centers?

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

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

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

What amount should be apportioned to the store’s cost center for rent and rates?

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

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

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 products 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 follows.

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

What is the total amount of overhead to be absorbed into 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).


How to calculate production overhead?

Add costs that are indirect such as rent, utilities, and other expenses that are not directly part of the product and you will get the production overhead.

What is production overhead?

Production overhead refers to the indirect cost that is incurred during the conversion of raw material into finished goods.

What is fixed production overhead?

Fixed production overhead is the overhead that is constant and does not change with the level of activity such as rent.

What is the manufacturing overhead formula?

Indirect material, indirect labor, and indirect expense are known as manufacturing and factory overhead.

What are the variable production overhead examples?

Variable overhead is the overhead that changes with the level of activity and production such as direct material change with units produced, direct labor means more units more labor hours, and direct expense.

Is depreciation manufacturing overhead?

Yeah, depreciation is usually considered a manufacturing overhead.

Is indirect labor manufacturing overhead?

Yes, indirect labor is part of manufacturing overhead.

What are non-production overheads in management accounting?

Non-production overheads are those expenses that are not directly involved in manufacturing a product.

What is the difference between manufacturing and non-manufacturing operations?

The manufacturing operations are those which are related to making a product such as assembling and welding whereas the non-manufacturing operation is the part of the product but not directly involved in making the product such as development and research cost.

Is advertising a manufacturing overhead?

It is not included in the manufacturing or production overhead.

How management helps a business?

Management is very necessary for a business because it helps from starting the business to making and selling the product. Business management helps a business to run its operations without any problem in managing the cost.

Why business management is so important?

Business management is very important as it plays a crucial role in developing a business, managing a business, and running business operations effectively. Without proper management, no business can run for a long time and faces lots of issues to manage the business.

How business management helps students?

Business management helps a student from different angles, it helps a student to manage things in a different way by using their skills.

3 benefits of studying business

Studying a business can help to know the following things,

  1. It helps to understand the economy of a country
  2. It helps to know how to create opportunities by using the resources
  3. The best is, it helps to create wealth by using the different tactics of business.

Business management vs business administration

Business Administration: It helps a business to manage and run its day-to-day operations.

Business Management: It helps a business to manage the overall problems of the business, from making the strategy to selling the product, management plays a very important role in developing the business.

What are the 4 types of business administration programs?

  1. Associate degree in business administration
  2. Master’s of business administration
  3. Bachelor of business administration
  4. Business administration diploma

Best highest-paying business degrees

The business field pays a handsome salary to all the employees but the following are the best field that has a high salary.

  1. Finance department
  2. Marketing Department
  3. Business Analytics

What do you mean by types of business fields?

Areas that cover the whole business are said to be business fields. There are different fields within the business, some of the most important business fields are the following,

  1. Finance
  2. Accounting
  3. Marketing
  4. Sales
  5. Human resource management
  6. Information technology
  7. Business administration
  8. Market research analyst
  9. Operation research analyst, etc.