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  1. avatar says

    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

  2. avatar says

    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.

    • Avatar of johnmoffat says

      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

    • Avatar of johnmoffat says

      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.

    • Avatar of johnmoffat says

      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)

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