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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4 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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9 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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10 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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12 days ago

I think the most appropriate overhead absorption rate is 10% of machine value.

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