[shamz2024]

Hi Syeda,

I hope you are well?

Not 100% sure but I think it is :

C) – 25%

Based on the information provided – 45% was paid in month 1 that leaves you with 55% to still pay

However you have been told that 20% is Irrecoverable Debt, this then means that 35% still left to pay

Then it says those who pay in within 30 days will receive a 10% discount, that means that 10% will pay in month one. So 35% – 10% = 25%.

Do let me know if that is correct, if not I do apologise.

Many thanks

Shamil

[shamz2024]

Hi All,

I wanted to ask if my previous reply could be deleted? I Misread the question, this question is based on per unit. So it would have been :

Total Fixed Overheads / (Divide By) / Total Budgeted Units

£25,000 / 4000 Units = £6.25

£25,000 comes from the fixed overheads based on each department – £10,000 + £5,000 + £4,000 + £6,000

[shamz2024]

Hi

I hope you are well?

I think the answer to this will be your Total Fixed Overheads / (Divide by) / Total Labour Hours based on budgeted output of 4000 units. That should give you the Overhead Absorption Rate per unit.

Hope this is right and helps you

Kind regards

Shamil

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