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March 12, 2015 at 8:02 pm
hey, at 27:40 the lecturer talks about rounding off to the nearest dollar… my question is if we have to round off to the next dollar whatsoever the amount is i.e if the amount is $12.5 we round it off to $13 but if the amount is $12.3 do we round it to $13 or we round it to $12?????
thanking you in advance, thanks
February 24, 2015 at 8:48 am
depreciation of equipment am not getting it i thoght of 7000/3000000 why did you put nbv up instead of deprciation to be up kindly explain
John Moffat says
February 24, 2015 at 9:25 am
The depreciation is $7,000. On the information given, the only sensible way of apportioning it is to base it on the net book value of the equipment in each department.
The total NBV of all the equipment is 300,000 + 300,000 + 100,000 = 700,000.
Since processing is 300,000 out of the total, the amount of depreciation given to processing is therefore 300,000/700,000 x 7,000 = 3,000. Same for the other departments.
October 25, 2014 at 4:52 am
why is it that people find cost accounting papers so difficult?
October 24, 2014 at 2:09 pm
to be specific accounting for overhead ‘b’ is showing Financial Reporting
October 24, 2014 at 2:17 pm
try another browser, or device..
October 24, 2014 at 1:51 pm
I have selected to watch accounting for overheads, but the video which is showing is financial reporting. Please help!!!!
September 18, 2014 at 10:12 pm
Great explanation…BTW if i was sitting their i could point out the miscalculation. I do point while listening lecture and was rechecking…thought i might be wrong…
I didn’t ever get bore during lecture. THANKS.
July 17, 2014 at 12:31 pm
Hi John. Why do you allocate the canteen expense only to canteen? I cant get the logic. Doesn’t all three departments benefit from the services of the canteen?
July 17, 2014 at 4:11 pm
In fact only 2 departments benefit from the canteen – the canteen is only there to feed the employees in the other 2 departments.
If you continue with the next example you will see that having got the total cost of the canteen, we then recharge it to the two production departments.
The approach is always the same – we first allocate and apportion overheads between all of the departments. Then we recharge the service departments to the production departments.
Example 4 specifically asks for the overheads to be split between all three departments; example 5 then asks for the canteen costs to be reapportioned to the other two departments.
June 6, 2014 at 8:12 pm
I assume that you mean example 3 and that you have downloaded the Course Notes.
The question says (about 4 lines from the end) that the remaining overheads are to be split 40% to assembly and 60% to finishing
Carl Andrew says
June 6, 2014 at 12:13 pm
Can someone explain to me why the remaining fixed over cost of $600,000 was splitted so? 40% to assembly and 60% to finishing.
August 15, 2014 at 8:02 am
It is stated in the question. @Carl Andrews
google search says
May 3, 2014 at 11:49 am
I am doing FIA FA1,FA2, MA1 MA2 in June I wish I has found these videos earlier then I would not feel so lost in my class. Thank you. i watch your videos and work along with the examples before I go to my accounting classes each week. Your videos makes the topics so much clear.
April 29, 2014 at 5:35 pm
For example 3, any reason why supervisors salary is considered while calculating absorption rate? I understand supervisor’s salary is non-production cost. Please help. Thanks!
April 29, 2014 at 6:09 pm
Assuming that the supervisor is in the factory (supervising the factory workers) then he is a production overhead
May 1, 2014 at 10:42 am
unless otherwise specified in a question, it would be part of production overhead?
May 1, 2014 at 11:01 am
Yes – although it would almost certainly be specified.
September 23, 2013 at 3:20 pm
Thank you it is helpful. I hope the lecture also shows how can tacle the exam Q&A techniques.
God bless Opentuition!!
September 7, 2013 at 1:35 pm
Hi John, the video doesn’t.work for overheads part b …. It gets stuck on 5:13 … Could you take a look please?
Btw … Good course I have been learning with a view to take F1 2 and 3 in december but could do with lots of practice questions? Any suggestions ? Thanks… Simon
September 7, 2013 at 7:19 pm
The video is OK – I think it must be your internet connection.
For practice questions you really need to get hold of revision/exam kist from one of the approved publishers.
September 3, 2013 at 1:48 am
Can I get the working for test question 4 (chapter 7). The answer is £2840 but how is this calculated? And would it not be more helpful to show how you get to the answer rather than just give an answer? Just a suggestion. Thanks anyway for the help and its is much appreciated.
September 3, 2013 at 8:41 am
I assume you mean test question 5
Because the labour is $400 in total and is paid $8 per hour, it means that there must be 50 hours of labour.
Production overheads are $26 per labour hour, and so total production overheads are 50 hours x $26 = $1300.
The prime cost is materials + labour = $300 + $400 = $700, and so the non-production overheads are 120% x $700 = $840.
So……the total cost of the job is $300 (materials) + $400 (labour) + $1300 (prod o/heads) + $840 (non-prod o/heads) = $2840
September 4, 2013 at 12:24 am
Yep that’s the one. So it was just dividing the 8 per hour by labour, make sense. Thanks for the quick reply.
August 21, 2013 at 11:21 am
Trying to get lectures on overhead. How do i get them
June 11, 2013 at 4:34 am
Why don’t we allocate Factory canteen expense base on the Number of Employees ?
June 11, 2013 at 6:22 am
We have apportioned it on the number of employees.
You could have apportioned it earlier (and would have got the same final answer), but since it is a cost centre on its own it is more sensible to get the cost of the canteen separately and then apportion this cost on the basis of the number of employees.
May 15, 2013 at 1:23 pm
ok i still dont get what he was doing at 23:55. did you divide 50 by 80??? or what?? because im trying to understand but still i dont get i.
May 15, 2013 at 2:24 pm
The answer is in one of the posts below.
The total space is 80,000 m^2. Of this, 50,000 is processing. Therefore processing has been given 50,000/80,000 of the total cost. (50/80 is the same as 50,000/80,000)
May 14, 2013 at 7:00 pm
Thank you for the great lecture! Very helpful!
December 16, 2012 at 3:18 am
Hi I don’t understand 23.55 where did he get 50/80000 I know 80000 is the total but I don’t know where he got the 50% from can some one help me plz
December 16, 2012 at 3:59 pm
@hussain87, Its not 50%! It is 50,000/80,000 (or 50/80) because processing has 50,000 space out of a total space of 80,000.
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