Dec 2010 Q#4 part A

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February 8, 2017 at 4:21 pm #371664
Ema
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Sir, In the solution to this part of the question I have taken the total cost of material applicable to the total units and also done same for the labour while charging overhead I have divided the total OH cost with the total cost of labour charged to all to the units, resulting in the slightly different (difference is after the decimal place). Is this acceptable or the way I have solved with is correct?
Thankyou
February 9, 2017 at 6:25 am #371710
John Moffat
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It will give the same answer.
However in your workings you should use hours (and not cost of labour) because the question specifically says that it is to be based on labour hours.
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