Can anyone please help me!! Does any know how to work out the overheads section?

gianlucapensotti · January 24

The answer booklet states that the answer is 3.17 for machine hours, 2.72 for labour hours and 5.07 for units but I just can’t seem to work out how to get those answers!! Every other section I’m fine with but just need to know how to work out the overhead costs so I can complete the quesion!!

Any help would be muchly appreciated as I have spent so long trying to work it out!!

Thank you

dumutroba · January 24

For the machine hours overheads
OAR you have calculated as £19, and this is correct, so just multiple by the priduction time to see how many were absorbed
19x10/60=3.16666, rounded up

Try the same method for the rest and you will see how easy it is

gianlucapensotti · January 24

Brilliant, thank you!!!

Can anyone please help me!! Does any know how to work out the overheads section?

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