Can anyone please help me!! Does any know how to work out the overheads section?
gianlucapensotti
Registered Posts: 12
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
Any help would be muchly appreciated as I have spent so long trying to work it out!!
Thank you
0
Comments
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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 isAAT Level 2. 2018 Distinction
AAT Level 3. 2018 Distinction
AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
Xero Certified Advisor5 -
Brilliant, thank you!!!0
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For Machine Hours: 19 * 10/60 => 3.17
For Labor Hours: 10.86 * 15/60 => 2.72
For the Absorption rate for units, you have already computed it to be 5.07 per unit.
0
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