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Allocated and apportioned fix o/h question

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Allocated and apportioned fix o/h question

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  • May 6, 2022 at 7:21 pm #655070
    tayacca
    Participant
    • Topics: 12
    • Replies: 11
    • ☆

    Hi sir, I hope you are well. I am bit confused when calculating absorption rate based on labour hours. Do we only take budgeted overheads allocated or apportioned? Or do we add them both and devide them by budgeted level of activity.
    For example (random figures)
    Allocated : £25,800
    Apportioned: £16200
    Budgeted activity: 3000 hours

    Many thanks

    May 7, 2022 at 9:06 am #655095
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54674
    • ☆☆☆☆☆

    You take the total overheads whether they are allocated or apportioned.

    Have you watched my free lectures on this? The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.

    May 7, 2022 at 11:03 am #655104
    tayacca
    Participant
    • Topics: 12
    • Replies: 11
    • ☆

    Thank you Mr Moffat. Have a good day ahead

    May 7, 2022 at 1:50 pm #655116
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54674
    • ☆☆☆☆☆

    You are welcome.

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