- June 16, 2020 at 4:00 pm
A company manufactured two products P1 and P2 in a factory divided into two cost centres, X and Y. The following budgeted data are available:
Allocated and apportioned fixed overhead costs RM88,000 RM96,000
Direct labour hours per unit:
Product P1 3.0 1.0
Product P2 2.5 2.0
Budgeting output is 8,000 units of each product. Fixed overhead costs are absorbed on a direct labour hour basis.
What is the budgeted fixed overhead cost per unit for each product?June 28, 2020 at 7:15 pm
Thanks for your question & welcome to Open Tuition.
We try to avoid answering direct questions like this because we are not aiming to do student homeworks for them!
Do you have an answer in your book that you cant follow & need to be explained?
If so, please let me know… this is where we can add the most value for you (to aid your understanding)… therefore, if you can let me know the answer you are given and which part of the explanation that you have, which you dont understand?
Otherwise its the usual formula
Fixed OH Cost (FOAR) = Total OH $ / Total labour hours
CIMA doesnt write in currency of RM -are you sure this is a CIMA question ( if so should be in dollars)
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