practice assessment 3, task 5 (b)
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frogsborne
Registered Posts: 9
I don't understand how they get to the figure £1375. I thought it was £41250 - £38425 = £2825?
How do they get the figure £1375?
How do they get the figure £1375?
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I know this is an old question but thought I'd answer it for my own and perhaps other people's benefit:
Answer to 5 (a) Machining budgeted O.A.R. is £14.50, which is required to answer (b).
This is done by dividing the budgeted overheads of £38,425 by 2,650 budgeted machine hours.
(b) £14.50 O.A.R. x 2,750 actual machine hours = £39,875
Actual overheads £41,250 - absorbed £39,875 = an under-absorption of £1,375.
I hope this helps someone. :-)
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it helped me thanks0
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