Robust Laptops dec 2010

This topic has 3 replies, 4 voices, and was last updated 10 years ago by afridi9rizwan.

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May 9, 2015 at 10:05 am #244910
jemma242
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Hi

I am working through Robust Laptops and confused how they got the overhead absorption rate of 14,190,000/ (23800 x 3) = £596.22

I know the 14,190,000 is total overheads, and 23400 is total units that take 3 hours to produce but how have they got £596.22?

I got the answer correct using total costs of (60,837,000/23800) + mark up. But confused how they have done it.

Thank you
Jemma
May 9, 2015 at 4:52 pm #244976
Ken Garrett
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Total fixed costs = 14,190,000
Total output = 23,800

14,190,000596./23,800 = 596.22

It’s just total fixed costs spread over output.
May 10, 2015 at 4:12 am #245038
samiirah
Member
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14190/23800*3=198.7 this represent absorp rate pr labour hr. So 1 unit take 3 hrs to produce yu need to multiply 198.7 by 3.yu will get the ans
May 11, 2015 at 3:21 pm #245270
afridi9rizwan
Participant
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its 14190000/71400. thats the aor. 1 unit takes 3 hours. 3 multiply by 198.7 and theres your answer. However you shouldnt focus on such small details at this level as itll only get u half a mark or 1. focus on the more strategic bits of the question.
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