Overhead recovery rate ..
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topcat
Registered Posts: 427
Hello,
"the budget production of 15,000 units of A plus 5000 units of B will require 4000 machine hours and 1050 direct labour hours"
Over head recovery should be based on:
-units of output
-Labour Hours
-Machine hours
The answer is machine hours
Just wondering why not units as there is more of them ?
"the budget production of 15,000 units of A plus 5000 units of B will require 4000 machine hours and 1050 direct labour hours"
Over head recovery should be based on:
-units of output
-Labour Hours
-Machine hours
The answer is machine hours
Just wondering why not units as there is more of them ?
0
Comments
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I am speculating it is because the AATgenerally examine based on the two commonly-used measures which are total numbers of direct labour hours and total numbers of machine hours for absorption rate calculations.0
