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unit 6 help please

meibakermeibaker Trusted RegularRegistered Posts: 481
can someone help me on this question please, just can't get my head around on how to work this out. thanks
expected factory overheads for the next year
supervisor's salary £12,750
number of production line employees for dep A: 8, dep B: 4 , dep C: 3
calculate the overhead absorption rate to two decimal places of each dep, based on direct labour costs, factory works a 37 hour week for 48 weeks in a year
what i did is 37x48= 1,776
dep A: 8X1776= 14,208 hours
dep B: 4x1776= 7104 hours
dep C: 3x1776= 5328 hours
i am not sure what to do next, please someone help me please

Comments

  • *Jo*Jo Experienced Mentor Registered Posts: 509
    Hi Mei,

    what workbook/paper are you working from? Its been a long day so I might be able to help if I can have a look at the full question myself.

    Jo
  • meibakermeibaker Trusted Regular Registered Posts: 481
    hi jo:
    i am using osborne book and it's question 5.3. thanks
  • *Jo*Jo Experienced Mentor Registered Posts: 509
    ah, i dont have that book sorry.

    If no one else gets back to you i will have anouther look a bit later or tomorrow. my brain is not in an working out mood today :)

    have you worked out the total labour cost yet?
  • meibakermeibaker Trusted Regular Registered Posts: 481
    hi, i do have the answers here, but don't understand how it worked out
    37 hours x 48 weeks = 1776 direct labour hours per emplyee
    dep A: 8 EMPLYEES= 8x1776= 14208 HOURS= £1.10 per direct labour hour, not sure how to this OAR out
  • meibakermeibaker Trusted Regular Registered Posts: 481
    hey, ignore what i just wrote, i am having a silly moment!
    i am trying to work out overhead absorption rate of each department.
  • meibakermeibaker Trusted Regular Registered Posts: 481
    i've done it. really had a stupid moment today! lol thanks
  • *Jo*Jo Experienced Mentor Registered Posts: 509
    Well done, sometimes it takes a mo for it to click!!

    Sorry I was as helpful as a slug on a lettuce leaf!

    Jo
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