Accounting for overheads part d

30 Comments
View all ACCA F2 / FIA FMA lectures >> This ACCA F2 / FIA FMA lecture is based on OpenTuition course notes, view or download here>>

Comments

  1. Avatar of marembon marembon says:
    October 14, 2012 at 5:21 am

    Can u help me work out no. 6 in chapter 7

    • Avatar of johnmoffat johnmoffat says:
      October 14, 2012 at 2:11 pm

      @marembon, the correct answer is C

      If S = stores and M = maintenance, then:

      S = 6300 + 0.05M
      M = 8450 + 0.10S

      Substituting for M in the first equation,
      S = 6300 + 0.05 (8450 + 0.10S)
      = 6300 + 422.5 + 0.005S
      So 0.995S = 6722.5
      S = 6756
      Substituting for S in the second equation, M = 8450 + 0.10 x 6756 = 9126

      So, the total for Department 1 is: 17,500 + (0.60 x 6756) + (0.75 x 9126)
      = 28398

  2. Avatar of raeb raeb says:
    October 8, 2012 at 1:43 am

    where can i get past paper question

  3. Avatar of nhs14 nhs14 says:
    October 7, 2012 at 12:10 am

    I need help with the Workings for Test Question 4 Please!

  4. Avatar of denzyboo denzyboo says:
    October 3, 2012 at 7:29 pm

    Can you help me work # 4 in chapter 7

    • Avatar of johnmoffat johnmoffat says:
      October 8, 2012 at 5:12 am

      @denzyboo, The total hours in X are (8000 x 3.0) + (8000 x 2.5) = 44.000.
      The total overhead in X is $88000, so overheads per hour are $2.

      If you do the same for Y, there are 24,000 hours and so the overheads per hour are $96,000 / 24,000 = $4.

      Product M used 2.5 hours of X (at $2 per hour) and 2.0 hours of Y (at $4 per hour).
      So total for a unit of M is (2.5 x $2) + (2.0 x $4) = $13.

  5. Avatar of desie86 desie86 says:
    September 24, 2012 at 12:25 am

    Why is the 0.20S end up in solving for S?

  6. Avatar of desie86 desie86 says:
    September 24, 2012 at 12:16 am

    how did you arrive at 0.97S?

  7. Avatar of accakeisha accakeisha says:
    September 12, 2012 at 2:52 pm

    Description of OT in algebraic form;

    Step 1. confused + lost = visiting OT site
    Step 2. free lectures + equation 1 = acca graduate
    Step 3. tell a friend.

  8. Avatar of adejumolu adejumolu says:
    August 30, 2012 at 11:18 am

    Please sir, help me with Question 4. I have been struggling with it. Awaiting your response. Thank you.God bless.

  9. Avatar of Reena Reena says:
    August 20, 2012 at 1:18 pm

    Dear Sir,
    Please note the sound disappears at 14:50.Please do needful I cannot follow example 6 .Thanks

  10. Avatar of hixam hixam says:
    August 20, 2012 at 12:52 pm

    Could you please tell me how you have got the answer of test Question 5 as c. in this chapter.

    • Avatar of johnmoffat johnmoffat says:
      August 20, 2012 at 3:06 pm

      @hixam, Materials and labour total $700 and so the prime cost is $700. Non-production overheads are absorbed at 120% of prime cost which is 120% x 700 = $840.

      Because the total labour cost is 400 and labour is paid 8 per hour, it means the the number of labour hours is 400/8 = 50. Production overheads are absorbed at $26 per labour hour and so the total production overheads are 50 x 26 = $1300.

      So….total cost is: Materials 300 + Labour 400 + production overheads 1300 + non-production overheads 840 = $2840

  11. Avatar of merces69 merces69 says:
    July 5, 2012 at 12:21 pm

    thank you very much. god bless you!

  12. Avatar of wrt130 wrt130 says:
    May 17, 2012 at 6:30 pm

    Thanks you Sir!!!

  13. Avatar of faizanfareed faizanfareed says:
    April 3, 2012 at 7:56 pm

    thank u sir….!!!!

  14. Avatar of osmansomali osmansomali says:
    February 15, 2012 at 10:41 pm

    hellow idil. well let me try my best to make it easier, 0.03S when you take it to other side of the equation it will be -0.03S (it will take minus sign). therefore deduct this from S ( dont forget that S is associated with number 1, so it is 1S). the equation will be like this S – 0.03= 0.97S.
    I hope you understand it.

  15. Avatar of idil23 idil23 says:
    February 15, 2012 at 9:12 pm

    Can anyone please explain to me how 0.03s transformed into 0.97s step by step as I am not good at algebra. I would appreciate it greatly.

  16. Avatar of kalamq kalamq says:
    January 20, 2012 at 3:01 am

    The sound disappears at 14:50, other than that it’s great stuff!

Leave a Comment