Assessment question task 8
KayLewis19
Registered Posts: 5
Please can someone help with question b) looked at the answers but can't firgure out how overhead absorption rate was calculated. I'm completely clueless about question c) also
Thanks.
Thanks.
0
Comments
-
Overhead absorption rate = overhead per labour hour
Total overheads = £240,000 + £360,000 = £600,000
Total labour hours = 60,000
Overhead per labour hour = 600,000/60,000 = £10
Part (c)
Absorption costing:
Total cost per unit = material + labour + overhead
Product Eff:
Material £10
Labour £40
Overhead £20 (from your answer)
Total cost per unit = 10 + 40 + 20 = £70
Product Gee:
Material £15
Labour £25
Overhead £12.50 (from your answer)
Total cost per unit = 15 + 25 + 12.50 = £52.50
Activity based costing:
Total cost per unit = material + labour + set up + material handling
Product Eff:
Material £10
Labour £40
Set up £3.20
Material handling £9.60
Total cost per unit = 10 + 40 + 3.20 + 9.60 = £62.80
Product Gee:
Material £15
Labour £25
Set up £20
Material handling £15
Total cost per unit = 15 + 25 + 20 + 15 = £751 -
@PeterC thank you so much, you're a life saver0
-
You're welcome0
-
Hiya
Quick question, how did you find budgeted labour hours (60,000 hours) in this question, Part b?
Everything else makes sense, but this one I couldn't work out.0 -
Eff
Hours per unit 2 (40/20)
Budgeted Units 25,000
Gee
Hours per unit 1.25 (25/20)
Budgeted units 8,000
2*25000 + 1.25 * 8000 = 50,000 + 10,000 = 60,000AAT 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 221 -
Many thanks0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 18.9K For AAT students
- 259 NEW! Qualifications 2022
- 146 General Qualifications 2022 discussion
- 9 AAT Level 2 Certificate in Accounting
- 37 AAT Level 3 Diploma in Accounting
- 64 AAT Level 4 Diploma in Professional Accounting
- 8.9K For accounting professionals
- 23 coronavirus (Covid-19)
- 274 VAT
- 92 Software
- 274 Tax
- 137 Bookkeeping
- 7.3K General accounting discussion
- 193 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 352 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 590 Job postings
- 17 Who can benefit from AAT?
- 36 Where can AAT take me?
- 44 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 65 AAT membership