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To calculate OAR, overheads of $1,377,400 should be divided by budgeted labour hours. How do we get labour hours for each product (X,Y and Z)?
You know from the question that the labour cost per unit for X is $30.
The question also says that the cost of labour is $12 per hour.Therefore each unit of X must take 30/12 = 2.5 hours.
It is the same workings for Y and for Z.
hi, I’m attempting this question at the moment and it’s in the form of a section B. Its from the Kaplan book. I’m not sure how to describe the question because i cannot take a picture of it. It’s question 5 .
First, if you are not referring to ‘June 2014 Question 1 – Duff Co’ then you should not be asking in this thread, but should start a new thread.
Second, I am sorry but I do not have the Kaplan books – only the BPP books. If it is a past exam question then tell me which exam and the name of the question, because then I will be able to find it.
Otherwise I cannot help (it is illegal to copy questions out here because of copyright laws).
- The topic ‘ACCA F5 – June 2014 Question 1 – Duff Co’ is closed to new replies.