Can someone show me the working out for the following question please?
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AdamG09
Registered Posts: 2
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Overhead absorbtion rate:
Total Overhead Costs/ Total of absorbtion factor e.g for Labour £245,000/17,500 = £14
Your direct materials and direct labour are as stated in the question
The overhead cost is the Absorbtion rate (from the 1st row) * amount of factor used e.g for labour £14*2 =£28
Final row just add the costs
Hope this helps.AAT Level 4, MAAT
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Thank you. I'm also struggling on this question. The direct labour cost is split into £11 per hour and i'm not sure how to complete the task.0
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If the direct labour cost is stated as £11 per hour (rather than simply £11) then you just need to multiply it by the number of hours for the product. You didn't post the question so for example if something took 0.5 hours the DLC would be 11*0.5=£5.5 but if it was 3 hours then 11*3= £33AAT Level 4, MAAT
ACCA in progress
F4- Passed Aug 2020
F5- Passed Dec 2020
F6- Passed Sep 2020
F7- Passed June 2021
F8 - Passed Sep 2021
F9 - Passed June 2021
SBL -
SBR - Passed Mar 22
ATX - Passed Dec 21
APM - Passed June 220
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