operating budget again
manbo
Registered Posts: 6
sorry guys but i have another one as well
http://osbornebooks.rtahosting.co.uk/osborne69/q11s.asp
the link is the one above. On the basis on what calculation is the labour and variable production overhead calculated? please help with this too. thanks
http://osbornebooks.rtahosting.co.uk/osborne69/q11s.asp
the link is the one above. On the basis on what calculation is the labour and variable production overhead calculated? please help with this too. thanks
0
Comments
-
Because variable overheads vary with the number of hours worked, they also vary with the number of units made
Look at the budget for the year
Variable overhead is £20,000 for 100,000 units produced, so £0.20 per unit
In May, the budget is for 8,000 units produced, so variable overhead is £0.20 x 8,00
ie £1,600
Labour:
In May, 8,000 units take 1,200 hours (8,000 x 9mins/60)
1,100 hours are paid at basic rate £14/hr 1,100 x 14 = £15,400
100 hours overtime 100 x 14 x 150% = £ 2,100
Total £17,5000
