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Activity Based Costing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Activity Based Costing

  • This topic has 3 replies, 2 voices, and was last updated 8 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • April 6, 2017 at 3:27 pm #380426
    teewhy11
    Member
    • Topics: 8
    • Replies: 4
    • ☆

    Hello tutor. Many thanks to you for your online lectures. Its very helpful.

    I listened to the chapter one and i don’t understand the logic behind the cost driver rate for receipt & inspection. i mean why did you divide 10 by 2000 units and 5 by 1500 units before multiplying it with $503.23.

    According to what i just learnt, you multiplied the others by the quantity. For example , process power, you multiplied 6 by 2000, 3 by 1500, 2 by 800, then making the addition as the denominator of Power overheads and getting $1.08.

    Please i want to know the logic behind the receipt and inspection so that i can undrstand fully and not cram to the exam hall.
    Thanks

    April 6, 2017 at 3:54 pm #380434
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54675
    • ☆☆☆☆☆

    Please tell me which lecture you are referring to.

    The main lectures working through the whole syllabus do not contain this example on ABC (and it is the main lectures that you should be learning from). I think you might be referring to a lecture working through a past exam question, but if you are then tell me which one.

    April 6, 2017 at 4:02 pm #380435
    teewhy11
    Member
    • Topics: 8
    • Replies: 4
    • ☆

    Your lecture on (F5 ACCA)Absorption costing. Chapter one. where you have the example on Hensau Ltd. Hensau Ltd has a single production process for which the following overheads have been estimated for the period ending 31st December 2014

    April 6, 2017 at 4:25 pm #380437
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54675
    • ☆☆☆☆☆

    I don’t know which notes and lectures you are looking at, but Chapter 1 of our lecture notes (and the lectures that go with it) do not have an example called Hensau Ltd!!

    I think Hensau is a past exam question, in which case you might be watching a lecture on here where I work through the question. However you will have to tell me which exam – I don’t have the time to look at all of my lectures working through past exam questions because I have uploaded so many 🙂

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