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zebbo says

i still dont understand how u got the 0.97

johnmoffat says

Have you looked at the answer at the back of the Course Notes?

1 – 0.03 = 0.97

Omari says

How did you subtract from both side sorry I couldn’t get it

johnmoffat says

I subtracted the same figure from both sides of the equation.

Its a bit difficult to be able to say more here. All I can suggest is that you either watch the lecture again, or work through the answer at the back of the course notes.

Abdullah says

is algebraic method required in CBE ?

Abdullah says

also i didn’t understand how did you get this value 0.97s @4:50

johnmoffat says

I make it clear in the lecture that you can do it either way – they will both give the same answer. Do it whichever way you find easiest and quickest.

For the 0.97S, I subtract 0.03S from both sides. (S – 0.03S = 0.97S)

(Remember that the answers are also at the end of the Course Notes)

michellesp says

thank you

michellesp says

Can someone please explain #5 in the test question for me please.

johnmoffat says

If you look below, you will find the answer to question 5 explained (4 or 5 posts further down this page)

Mahrukh says

Salam tutor,

I wanted to know if hours are given instead of percentage as the basis of apportionment, would the algebric method still be applicable??

johnmoffat says

Yes, but the algebraic approach is only relevant if two service departments are doing work for each other.

Ihuoma says

Hello

Please I do not know how you got 0.97s= 22250

Please help me

thank you

gabriele says

Can you give me the details for the questions 4-5? Thanks

johnmoffat says

4:

The total overheads for centre X are $88,000.

The total hours worked in X are (8,000 x 3.0) + (8,000 x 2.5) = 44,000 hours.

So the absorption rate for X is 88,000/44,000 = $2 per hour.

You can do the same for Y and calculate the absorption rate for centre Y per hour.

To get the cost per unit of M, it is 2.5 hours at $2 per hour, plus 2.0 hours at the absorption rate for centre Y.

5:

Since labour is paid $8 per hour, they are working 400/8 = 50 hours.

So the total cost is the total of materials (300), plus the labour (400) plus production overheads (50 hours at $26 per hour) plus non-production overheads (120% x (300 + 400)).

Yanique says

what is the correct answer for Question 4?

johnmoffat says

The answers are at the back of the Course Notes.