PCR - over head premium

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
when you had to work out overheads how much overtime did u allocate per product. i put an assumption in and said time spent equally so split the overhead hours of 1000 to 500 per product

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    PCR - over head premium

    The overhead premium was allocated to fixed costs so it should not have been entered into normal overheads
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PCR - over head premium

    The overtime premium will be charged to overhead, but remember that the basic wages will be charged to labour, so 4000hrs for aston X 8 and 7500 hrs for borum X8
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PCR - over head premium

    you said overhead premium but it the abosorption cost i calculate isit the same
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PCR - over head premium

    I did the same as you Lea, but I wasn't sure about it either.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PCR - over head premium

    i did the same as you hussain. I assume that the overtime premium is already included in the fixed overhead cost per labour of £4.00 so did not include the premium in the expenses ....has just multiplied the labour hours required for each product by the basic rate of £8.00 ...therefore for Aston (4,000 x £8) and Brum (7,500 x £8).<BR>But of course the overtime is 1,000 hours ...<BR><BR>hope this is right !!! <BR><BR>JP
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PCR - over head premium

    did the same as you JP and feel confident that this bit was right<BR><BR><img src="i/expressions/face-icon-small-smile.gif" border="0"><BR>

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