Practice exam 2 - task 5; can someone explain?
Tabitha005
Registered Posts: 9
I got the first part of the question correct when working out the absorption rates as follows:
machine hr £12
labour hr £6
unit £4
So why, then, does part (b) of the answer give the overhead absorption rates as:
machine hr £2
labour hr £3
unit £4
????
machine hr £12
labour hr £6
unit £4
So why, then, does part (b) of the answer give the overhead absorption rates as:
machine hr £2
labour hr £3
unit £4
????
0
Comments
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So each machine hour absorbs £12 but each unit only takes 10mins of machine time so only absorbs 12/6 = £2. Same for labour 30 mins so 6/2=£3AAT Level 4, MAAT
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Thank you for responding. Stupidly, I hadn't fully read the question - that'll teach me!0
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Can someone explain please how do you get £18.50 on direct cost?! I need to find a logical way to understand it!!! Thanks0
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Hi Stefania
I can't see the full question only what was above. Direct costs are things that are directly required for the product. So materials, labour etc the rent and heating would be indirect as they are paid independant of the product produced.AAT Level 4, MAAT
ACCA in progress
F4- Passed Aug 2020
F5- Passed Dec 2020
F6- Passed Sep 2020
F7- Passed June 2021
F8 - Passed Sep 2021
F9 - Passed June 2021
SBL -
SBR - Passed Mar 22
ATX - Passed Dec 21
APM - Passed June 220 -
Hi,
I hope the picture attached is clear enough.
Thank you!!!0 -
Hi,
I hope the picture attached is clear enough.
Thank you!!!0 -
For s> @Pian32 said:
> Hi Stefania
>
> I can't see the full question only what was above. Direct costs are things that are directly required for the product. So materials, labour etc the rent and heating would be indirect as they are paid independant of the product produced.
For some reason it doesn't let me attach a picture. Is there any other way I can send it to you?!0 -
For s> @Pian32 said:
> Hi Stefania
>
> I can't see the full question only what was above. Direct costs are things that are directly required for the product. So materials, labour etc the rent and heating would be indirect as they are paid independant of the product produced.
For some reason it doesn't let me attach a picture. Is there any other way I can send it to you?!0 -
For s> @Pian32 said:
> Hi Stefania
>
> I can't see the full question only what was above. Direct costs are things that are directly required for the product. So materials, labour etc the rent and heating would be indirect as they are paid independant of the product produced.
For some reason it doesn't let me attach a picture. Is there any other way I can send it to you?!0
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