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Allocated and apportioned fixed overhead costs:Primary=$96000
Finishing=$82500Direct labour minute per unit:
-Product x:Primary=36
Finishing=25-Product y: Primary=48
Finishing=35Budgeted production:x=6000 units
y=7500 unitsFixed overhead costs are absorbed on a direct labour hour basis.
What is the budgeted fixed overhead cost per unit for product y?
A.$11
B.$12
C.$14
D.$15The answer in the revision kit is D; however the workings done is a bit too
complicated. Could you please make it simple for me?
Thanks.You must watch the free lectures.
I work through a very similar example in my lectures, and I am not going to type it all out here!
ok sir, I will watch your lectures. By the way which example precisely is similar?
You need to watch all of the lectures that go with chapter in the lecture notes on overheads (because it builds it up with several examples – you need to understand what is happening, because the exam deliberately checks that you understand rather than just learning rules).
I really do suggest that you watch all of the lectures in order because they are a complete free course for Paper f2 and cover everything needed to be able to pass the exam well.
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