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1. Difference in direct wages and direct labour. Theoritically shouldn’t both be the same for the output hours on standard rate?
2. Is material requisitioned = direct material? A confusion in terminology
3. If two (A and B) departments have the following data on:
Direct Labour Cost
Factory Overhead
Direct Labour Hours
Machine HoursI am confused on how to approach this problem. Do i calculate OAR based on summation of costs and labour hours for both departments?
1. Direct wages and direct labour both mean the same.
2. Material requisitioned is direct material
3. It depends partly on what the question says but if the question doesn’t specify then we would absorb over either labour hours or machine hours depending on whether most of the work was done by labour or by machine.
I do explain this in my free lectures. The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
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