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i m having problem in the lecture video where u explained to calculate the overhead cost per hour. I want to ask why we have to sum up the total hours for desks and chairs and divide it by 700,000 overhead ,instead of this why cant we take out seperate calculations for desk :700,000/120000 and for chair 700,000/20,000? Could you please explain me this
I assume that you have downloaded the free lecture notes that are used in the lectures, in which case you will see that the question specifically states that overheads are to be absorbed on a labour hour basis (which is usually the case for reasons that are explained in the lectures).
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