# Can someone show me the working out for the following question please?

Registered Posts: 2
I have attached a PDF file of the question.

• Registered Posts: 261

Total Overhead Costs/ Total of absorbtion factor e.g for Labour £245,000/17,500 = £14

Your direct materials and direct labour are as stated in the question

The overhead cost is the Absorbtion rate (from the 1st row) * amount of factor used e.g for labour £14*2 =£28

Final row just add the costs

Hope this helps.
AAT Level 4, MAAT
ACCA in progress
F4- Passed Aug 2020
F5- Planned for Dec 2020
F6- Passed Sep 2020
F7
F8
F9

• Registered Posts: 2
Thank you. I'm also struggling on this question. The direct labour cost is split into £11 per hour and i'm not sure how to complete the task.
• Registered Posts: 261
If the direct labour cost is stated as £11 per hour (rather than simply £11) then you just need to multiply it by the number of hours for the product. You didn't post the question so for example if something took 0.5 hours the DLC would be 11*0.5=£5.5 but if it was 3 hours then 11*3= £33
AAT Level 4, MAAT
ACCA in progress
F4- Passed Aug 2020
F5- Planned for Dec 2020
F6- Passed Sep 2020
F7
F8
F9