ECR Dec 2003
System
Posts: 100,534 🤖 Admin 🤖
I really struggled with overhead absorbtion and normally work it out as follows:-<BR><BR>Work out the OA rate by dividing budgeted overheads by budged labour/machine hour rate.<BR><BR>Multiply this rate by actual machine/labour hours to get the absorbed overheads.<BR><BR>Compare with actual overheads to determine under/over absorbtion.<BR><BR>I firstly thought that Dec 2003 task 1.5 was a typo but now I am not to sure as you don't actually get a figure of actual overheads and in the question (additional data before you do the allocation/apportionment table)it states that the overheads are total budgeted and actual overheads.<BR><BR>Based on this I then would have thought that you take the £24,000 for cutting and compare with the absorbed of £23,125 and get UNDERABSORBED of £875, however most people are saying it's a typo on my course.<BR><BR>I am just wondering what peoples thoughts were on this question as it is quite badly worded.
0
Comments
-
ECR Dec 2003
Hi Mel<BR><BR>If you take a look in, i think it is the resource centre, on this web site, you'll find the answers and the chief examiners report, which may help.<BR><BR>Don't forget, if alot of students do badly on a question, they are bound (so they say themselves) to examine the question and readjust their findings. It's that competant/not competant old chestnut. <BR><BR>Good luck on Mon<BR><BR>TTFN<BR><BR>Sarah0