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ABC Practice test Q.No.3 other Overhead.

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › ABC Practice test Q.No.3 other Overhead.

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.
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  • January 27, 2018 at 10:25 am #433390
    silju
    Member
    • Topics: 1
    • Replies: 1
    • ☆

    Can i know in the other overhead calculation how the answer arrived with 96000 x $230400/115200 = 192000

    January 27, 2018 at 10:43 am #433404
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54700
    • ☆☆☆☆☆

    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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