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Can i know in the other overhead calculation how the answer arrived with 96000 x $230400/115200 = 192000
The total labour hours for P are 2,400 x 8 = 19,200, and for Q are 9,600 x 10 = 96,000.
Therefore in total there are 19,200 + 96,000 = 115,200 hours.
Therefore the absorption rate is 230,400/115,200 = $2 per hour.
Therefore the total for Q is 96,000 hours x $2 = 192,000.
Did you watch my free lectures on ABC before attempting the test?
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