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Tai Wo says
June 5, 2015 at 12:52 am
factory heat shpuld be allocated to fACTORY
John Moffat says
June 5, 2015 at 7:48 am
It is – all the departments are in the factory otherwise there would be no point in the whole question!!!!
July 6, 2015 at 9:13 pm
sir I don’t understand how you got 39$
July 7, 2015 at 8:21 am
I assume you mean the cost of a desk in example 3 ?!!!
Materials are $12 per unit. Labour is 4 hours x $2 = $8 per unit.
Assembly overheads are 3 hours x $3 = $9 per unit.
Finishing overheads are 1 hour x £10 = $10 per unit.
Total = 12 + 8 + 9 + 10 = $39
(You can see answers to all of the examples at the end of the Lecture Notes)
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