overhead always recovered on the higher of machine hours or direct labour hour?

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topcat
topcat Registered Posts: 452
in AAT Level 4 (Level 8 in Scotland)
Hello,

"The budget production of 18,000 units will require 25,000 machine hours and 4,000 direct labour hours."

so the question always seems to go for the higher so in this case it would be machine hours? Is it always the case it is the one with more hours?

Thanks

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  • Lucy_M
    Lucy_M Registered Posts: 136 Beyond epic contributor 🧙‍♂️
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    Hi,

    That was what our tutor said... How did the exam go yesterday?

    Luce


  • topcat
    topcat Registered Posts: 452
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    Lucy_M wrote: »
    Hi,

    That was what our tutor said... How did the exam go yesterday?

    Luce


    Hey Lucy,

    Yea it went really well thanks everything balanced first time :D seemed to breeze through it , which shocked me those hours slogging away must have paid off. Now that killer wait.

    Starting next one now i have a 6 days to power revise budgeting
  • Lucy_M
    Lucy_M Registered Posts: 136 Beyond epic contributor 🧙‍♂️
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    Glad the exam went ok! Bit worried about budgeting now, looking at your posts, really hoped that was going to be a bit easier... I'm sure you'll get to grips with it! :001_smile:

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