Registered 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

• 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
• Registered Posts: 481
hi jo:
i am using osborne book and it's question 5.3. thanks
• 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?
• 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
• 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.
• Registered Posts: 481
i've done it. really had a stupid moment today! lol thanks
• 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