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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:

Show Suggested Answer Hide Answer
Suggested Answer: D

Contribute your Thoughts:

Stefanie
2 days ago
A) 6 per machine hour? That's a bit too specific, don't you think? I'm going with C) 400% of radiologists' wages. Gotta love those high overhead rates!
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Edda
9 days ago
Hmm, this is a tricky one. I'm leaning towards D) 3 per staff hour, but I'm not entirely sure. Better double-check the details.
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Donte
22 days ago
I agree with Pansy, 6 per machine hour makes more sense as the overhead absorption rate for the Radiology Department.
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Eugene
27 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
28 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
1 months ago
I think the most appropriate overhead absorption rate is 10% of machine value.
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