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

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam

Question #: 82
Topic #: 4

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:

A6 per machine hour

B10% of machine value

C400% of radiologists' wages

D3 per staff hour

Show Suggested Answer

Suggested Answer: D

by Janessa at Sep 19, 2024, 12:04 PM

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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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