• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Absorption and marginal costing principles

Forums › ACCA Forums › ACCA MA Management Accounting Forums › Absorption and marginal costing principles

  • This topic has 0 replies, 1 voice, and was last updated 13 years ago by russs.
Viewing 1 post (of 1 total)
  • Author
    Posts
  • May 13, 2012 at 8:28 am #52640
    russs
    Member
    • Topics: 3
    • Replies: 2
    • ☆

    Hey I’m Russ, going insane.

    I have Total production costs (direct materials, direct labour, variable production costs and fixed production costs) of 80,000. The direct materials are 20,000, direct labour 50,000, variable overheads 10,000 and fixed overheads 10,000. (This is at 140% capacity)

    I’ve searched for different ways but the internet varies so widely that finding a definitive guide is difficult. I worked out the direct labour overhead absorption rate, the direct materials absorption rate and the prime cost overhead absorption rate.

    Also since I dont have the number of units I also divided the costs by 100 to get the cost of each area. So, instead of £?? per unit its £?? per 1% of capacity, I’m not sure if that helps or not but I saw it somewhere.

    How would I work out the additional costs of working an additional 10% through at outsourcing company (if I’m currently working at 140%) by using marginal and absorption costing principles?

  • Author
    Posts
Viewing 1 post (of 1 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • ahmadhoney on How to register with ACCA?
  • John Moffat on Interest rate risk management (1) Part 5 – ACCA (AFM) lectures
  • osman-the-zephyr@ on MA Chapter 1 Questions Accounting for Management
  • adebusola on MA Chapter 1 Questions Accounting for Management
  • Sharith on Interest rate risk management (1) Part 5 – ACCA (AFM) lectures

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in