PCR EXAM

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Can some one tell me if i calculated the factory overheads correctly in section 2. the question said that factory overheads are charged at 150% of total production costs. therefore i calculated it as total direct labour cost including the basic element of overtime,the overtime premium because i thought that was still classed as production time less the idle time because that is charged as non production time then * 150%. probably wrong but would like to hear your views. thanks june. PS I also included the overtime premium and idle time again listed seperately under factory overheads.

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    PCR EXAM

    I just used the straight 150% - I presumed that the overtime premium and idle time would be a variance within the factory overheads (does that make sense?).<BR><BR>I did however write a note to that effect so even if what I did was wrong - I have explained why I did it. <BR><BR>Perhaps the examiner will take pity on me!!!<BR><BR>Sara
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PCR EXAM

    sorry sarah my mind must me numb from all the studying can you elaborate a little more on the variance
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PCR EXAM

    I remember the overheads being 150% of labour costs. So I just timed my labour costs by 150%<BR><BR>Hopefully that'll be something like right :)<BR><BR>Mandy
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PCR EXAM

    did you calculate direct labour overtime premium and idle time then *150%.<BR>that could be right> DID YOU INCLUDE THE OVERTIME PREMIUM AGAIN AND THE IDLE TIME AFTER THE % CALCULATION.I AM NOW CONFUSING MYSELF. YOUR WAY SOUNDS BETTER.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PCR EXAM

    I totally disregared the idle time as they never gave you a percentage or anything - whether that is right or not, I have no clue.<BR><BR>The first period I took the basic hours and times it by 150%, the other periods I added the basic time and the overtime together and multiplied that by 150%<BR><BR>Like I said, whether it is right or not is another matter :)<BR><BR>Mandy
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PCR EXAM

    I also just took labour cost x 150%. As far as I recall, there was idle time in period 1 that was already included, and overtime was also already included so no need to work them out separately and add to get overhead. I think this was a trap!

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