unit 6 help please

meibaker
meibaker Registered Posts: 481 Dedicated contributor 🦉
can someone help me on this question please, just can't get my head around on how to work this out. thanks
expected factory overheads for the next year
supervisor's salary £12,750
number of production line employees for dep A: 8, dep B: 4 , dep C: 3
calculate the overhead absorption rate to two decimal places of each dep, based on direct labour costs, factory works a 37 hour week for 48 weeks in a year
what i did is 37x48= 1,776
dep A: 8X1776= 14,208 hours
dep B: 4x1776= 7104 hours
dep C: 3x1776= 5328 hours
i am not sure what to do next, please someone help me please

Comments

  • *Jo
    *Jo Registered Posts: 509 Epic contributor 🐘
    Hi Mei,

    what workbook/paper are you working from? Its been a long day so I might be able to help if I can have a look at the full question myself.

    Jo
  • meibaker
    meibaker Registered Posts: 481 Dedicated contributor 🦉
    hi jo:
    i am using osborne book and it's question 5.3. thanks
  • *Jo
    *Jo Registered Posts: 509 Epic contributor 🐘
    ah, i dont have that book sorry.

    If no one else gets back to you i will have anouther look a bit later or tomorrow. my brain is not in an working out mood today :)

    have you worked out the total labour cost yet?
  • meibaker
    meibaker Registered Posts: 481 Dedicated contributor 🦉
    hi, i do have the answers here, but don't understand how it worked out
    37 hours x 48 weeks = 1776 direct labour hours per emplyee
    dep A: 8 EMPLYEES= 8x1776= 14208 HOURS= £1.10 per direct labour hour, not sure how to this OAR out
  • meibaker
    meibaker Registered Posts: 481 Dedicated contributor 🦉
    hey, ignore what i just wrote, i am having a silly moment!
    i am trying to work out overhead absorption rate of each department.
  • meibaker
    meibaker Registered Posts: 481 Dedicated contributor 🦉
    i've done it. really had a stupid moment today! lol thanks
  • *Jo
    *Jo Registered Posts: 509 Epic contributor 🐘
    Well done, sometimes it takes a mo for it to click!!

    Sorry I was as helpful as a slug on a lettuce leaf!

    Jo
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