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Dear John, one question is to ask to calculate TA ratio, when I calculate factory cost per machine hour , (labour 264,000+overhead 834,000+marketing and administrative costs 265,000)/machine hours 1920, but the answer is that (labour 264,000+overhead 834,000)/machine hours 1920. why they cut marketing and administrative costs off?
many thanksIf you want me to answer, then in future you must ask in the Ask the ACCA Tutor Forum – this forum is for students to ask each other.
It is difficult to answer questions without seeing what the question is! However, it is because we are only interested in factory costs (cost per factory hour). Marketing and admin are not costs in the factory.
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