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cost per factory hr

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › cost per factory hr

  • This topic has 2 replies, 2 voices, and was last updated 5 years ago by AvatarJohn Moffat.
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  • August 22, 2020 at 12:02 pm #581480
    AvatarHolmes1308
    Member
    • Topics: 34
    • Replies: 16
    • ☆☆

    sir when calculating total factory costs for the purposes of finding cost per factory hr do we need to add Variable production overheads also to total factory costs?

    August 22, 2020 at 12:10 pm #581481
    AvatarHolmes1308
    Member
    • Topics: 34
    • Replies: 16
    • ☆☆

    Is it that every item other than non-production variable and fixed overheads and direct material will be added?

    August 22, 2020 at 3:42 pm #581509
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54838
    • ☆☆☆☆☆

    I assume you are referring to throughput accounting, and if so then total factory costs are all production costs except for direct material.

    Do watch my free lectures on this. The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.

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