ECR June 2004 task 1.3 and 1.4
podoli
Registered Posts: 1 New contributor 🐸
could anyone please answer my questions on ECR June 2004 task 1.3 and 1.4
At task 1.3 allocation and apportionment of budget fixed overhead which I got them correct
Cutting dep: £6000pounds
Stitching dep £5400 pounds
Then at task 1.4 a) calculate the production overhead absorbed for May in the cutting Dep
3poundsx £2200hours= £6600
b) Calculate the under or over absorbed production overheads for May in the cutting Dep
the answer is £6600 pounds- £6200 pounds= £400 over
My question is : to work out (b)
why not £6600- £6000 or £ 6000-£6200
why don’t we use the figure from Task 1.3 as the budgeted fixed overhead?
thank you very much for your help.
At task 1.3 allocation and apportionment of budget fixed overhead which I got them correct
Cutting dep: £6000pounds
Stitching dep £5400 pounds
Then at task 1.4 a) calculate the production overhead absorbed for May in the cutting Dep
3poundsx £2200hours= £6600
b) Calculate the under or over absorbed production overheads for May in the cutting Dep
the answer is £6600 pounds- £6200 pounds= £400 over
My question is : to work out (b)
why not £6600- £6000 or £ 6000-£6200
why don’t we use the figure from Task 1.3 as the budgeted fixed overhead?
thank you very much for your help.
0
Comments
-
Absorbed overhead
Always compare actual overhead with the absorbed overhead.
The budget has served its purpose, you used it to find the overhead absorption rate.
overhead absorption rate x hours actually worked = absorbed overheadSandy
sandy@sandyhood.com
www.sandyhood.com0
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