PEV Past Paper June 2003 Part 1

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hello,<BR><BR>Can someone help me please? <BR><BR>I am stuck on Question 1.1, part a) x) - The Actual Absorption Cost of Actual Production.<BR>In the answers, they are giving a figure for Fixed Overhead as £16,250 but I have no idea where that figure comes from - the OAR per machine hour is £20, the actual machine hours worked were 656.<BR><BR>Please please help!<BR><BR>Thank you.

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    PEV Past Paper June 2003 Part 1

    Hi there,<BR><BR>fixed overheads are shared over 2 departments.<BR><BR>Awnser to avii) 26000 /1152 X720 = 16250<BR><BR>Awnser to ax) materials = 23985<BR> labour = 2788<BR> fix o/h = 16250 toal = 43023<BR><BR>This is what I had written down from last years class work. Think this is correct. Hope it helps.

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