Budgeting help needed!

Cookiex

Hello everyone. I am doing the practice assessment 1 (Osborne book)

Task 1.4 (B)

How do I work out the variable production overhead for May.

Thank you for your help

SandyHood

Does your question look anything like part (c) of Q9 of this practice exam?
http://www.rtanet.com/osborne6/q9.asp

Cookiex

Thank you for the reply. On the Osborne website it looks like question Q11.

Jo Clark

Question 11 of Budgeting Test 1 or 2?

Jo Clark

Hello Cookie

If it is Test 1 - http://www.rtanet.com/osborne6/q11.asp

Take the total variable production overhead for the year (20,000), divide by the number of units made in the year (100,000) then multiply this up by the number of units made in May (8,000).

The answer being 1,600.

Hope this helps.


JC