This topic contains 2 replies, has 2 voices, and was last updated by Pinky 3 years ago.
Viewing 3 posts - 1 through 3 (of 3 total)
Viewing 3 posts - 1 through 3 (of 3 total)
You must be logged in to reply to this topic.
OpenTuition.com Free resources for accountancy students
Free ACCA lectures and course notes | ACCA AAT FIA resources and forums | ACCA Global Community
Home › Forums › ACCA Forums › F2 – FMA Management Accounting Forums › Help
This topic contains 2 replies, has 2 voices, and was last updated by Pinky 3 years ago.
How to solve this?
A Co. produces two products P and Q – that are both worked on in two departments – 1 and 2.
Each Unit of P spends 1 hr in dept. 1 and 2 hrs in dept. 2.
Each Unit of Q spends 2 hrs in dept. 1 and 2 hrs in dept. 2.
The total budgeted production is as follows:
P 5,000 units
Q 10,000 units
The total budgeted overheads are as follows:
Department 1 $ 50,000
Department 2 $ 90,000
What is the overhead cost per unit for Product P?
You need to calculate the overhead cost per hour in each of the two departments (by dividing the total cost by total hours for each department).
Then you can calculate the overhead cost for Product P by charging 1 hour at the cost per hour in dept 1 and also 2 hours at the cost per hour in dept 2.
Thanks a lot John!
Got it! 🙂
Ans is $8.00($8.33).
Am I right?
You must be logged in to reply to this topic.