ABC Costing Unit 8 Kaplan Book
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anniebabe
Registered Posts: 595 Epic contributor 🐘
Please can someone try and help me with this:
I am trying to work through Page 56 (Kaplan unit 8/9 NVQ) Activity 2  Products X and Y
answers on page 69.
Stuck on the Labour Supervision part
where do they get the figure 47500 from?
any help much appreciated.
I am trying to work through Page 56 (Kaplan unit 8/9 NVQ) Activity 2  Products X and Y
answers on page 69.
Stuck on the Labour Supervision part
where do they get the figure 47500 from?
any help much appreciated.
0
Comments

Aww  can no one help me with this one?0

If you type the question out I will try and help.0

Products X and Y
Calculate the unit cost of products X and Y, where products X and Y are sole output of the business:
Product X Product Y
Units produced 45000, 5000
Materials cost per unit £1.50, £4.00
Direct Labour per unit £7.00, £3.50
Direct Labour time per unit 1 hr 30 mins
Number of set ups 30, 10
Number of purchase orders 70, 10
Overhead costs:
Set up £20,000
Purchasing £16,000
Labour supervision £23,750
Labour supervision
23750
47500 50 p per labour hour0 
Just got lost with calculating the Labour supervision  not sure where they got the figure
47500 from
If anyone could help?
Many thanks0 
I don't get the 47500, I thought the question lists total supervision costs as 23750?0

yep! I am confused0

X Y
labour 7.00 3.50
material 1.50 4.00
o/h per unit 1.14 1.65
Total 9.64 9.15
I got this after some rough calculations?0 
in the answers they have
Material cost 1.50, 4.00
Labour 7.00, 3.50
Total 8.50, 7.50
Set up £500 per set up
Purchasing £200 per order
Labour supervison 50p per labour hour not sure how they worked this out.0 
Labour supervison 50p per labour hour not sure how they worked this out.
Yes that makes snse. Takes 1 hour labour for an X and 0.5 hour for a Y, according to the question.
So work out the total hours for both products and apportion the supervisor cost over it.
Although its not 50p per labour hour, but 50p supervisor cost per £1 of labour cost.
Direct Labour time per unit 1 hr 30 mins (hours) 1 0.5
total (units x labour cost per unit) £ 45000 2500
Apportion superisor cost by labour cost £ 22500 12500 
Please can someone try and help me with this:
where do they get the figure 47500 from?
any help much appreciated.
The answer you are working towards is cost per unit X and Y
The labour supervison cost (FIXED OVERHERDS) is £23,750
the labour supervision will be divided by total labour hours used to produce 45,000 units X and 5,000 units Y
unit X takes 1 hour to make therefore 45,000 units times 1 hour = 45,000 labour hour
uniy Y takes 30 mins to make therefore 5,000 units times half an hour = 2,500 hours
Total labours requied = 45,000 + 2,500 = 47,500 labour hours
labour supervision costs = £23,750 divide by 47,500 hours = £0.50 per hour.
for unit X = £0.50 times 1 hour = £0.50
for unit Y = £0.50 times half an hour = £0.25
hope the above explanation helps0 
Yes that all makes sense now ive read it all through again, many many thanks for taking the time to help me.0
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