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October 21, 2020 at 8:13 pm
If cost centre is also an item of equipment as per Q2, then what is the difference between an item of cost unit and an item of cost centre ?
John Moffat says
October 22, 2020 at 8:32 am
Cost units are what we are producing.
July 21, 2020 at 1:53 pm
Thank you Sir, for this amazing lecture. 🙂
July 21, 2020 at 1:55 pm
And the free quizzes like this 🙂
July 21, 2020 at 2:07 pm
Thank you for your comments 🙂
July 16, 2020 at 8:27 pm
I got 100%
June 3, 2020 at 11:49 am
I still wonder why $400 of direct labor is calculated in non-production overheads
July 6, 2020 at 5:33 pm
Non-production overheads are absorbed at rate of 120% of prime cost: Prime cost= direct material+direct labour= 300+400=700, then 120% of 700 means 840. In general, non-production overheads are absorbed per labour hour or machine hour, etc since what the question specifies for a base. In this example, it mentions, absorption is based on the rate of prime cost, so you need to follow what the question says.
Choosing the appropriate absorption base The different bases of absorption are as follows. ? A percentage of direct materials cost ? A percentage of direct labour cost ? A percentage of prime cost ? A rate per machine hour ? A rate per direct labour hour ? A rate per unit ? A percentage of factory cost (for administration overhead) ? A percentage of sales or factory cost (for selling and distribution overhead)
May 2, 2020 at 9:03 pm
I do not understand how you got 50 hours for #4?
May 18, 2020 at 2:32 am
Total $400 direct labour and $8 per direct labour hour, divide it then you will get 50 hours
May 18, 2020 at 7:31 am
April 29, 2020 at 10:57 pm
April 19, 2020 at 10:31 am
Sir can you please tell us the marks distribution as per the topic i. e Weitage as per topic for Exam?
April 19, 2020 at 12:15 pm
The ACCA does not give weightages for each topic.
January 22, 2020 at 5:30 am
Q 3 is confusing
January 22, 2020 at 7:01 am
It is a past real exam question (and is similar to one of the examples that I work through in my free lectures) 🙂
September 11, 2019 at 2:23 pm
i didnt understand the 3rd question. do i have to prepare a cost card in it?
September 12, 2019 at 6:51 am
No, the question just wants you to calculate the fixed overheads per unit for product M.
You need to calculate the overhead absorption rate for each of the 2 cost centres as I do in the free lectures, and then you can calculate the fixed overheads for product M.
September 12, 2019 at 1:04 pm
Thank you, sir. I think I need a lot of practice!
September 12, 2019 at 3:17 pm
You are welcome 🙂
September 7, 2019 at 7:38 am
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