Dear SIr/Madam,
Please advise:
Q3 Answer: Set up =15 x $336,000/28=180,0000
Inspection cost=3x$192,000/8 = 72,000
Other OH=96,000 x $230,400/115,200=192,000
Total =$444,000
OH per unit for Q = $444,000/9600 =$46.25
Please advise how to get 115,200. and 9600. Thank you.
Chia
Ask the Tutor ACCA PM
F5 Chapter 1 Absorption costing quiz
10y ago#1Other overheads are absorbed on the basis of labour hours. The total labour hours for Product P are 2,400 x 8 = 19,200, and for Q are 9,600 x 10 = 96,000.
So the total = 19,200 + 96,000 = 115,200.
9,600 is the number of units of Q that are produced and is given in the question.
I do suggest that you watch our free lecture - they are a complete course for Paper F5 and cover everything needed to be able to pass the exam well. My ABC lecture works through a very similar example to the question that you are asking about.
You certainly should not attempt the practice tests without having watched the lecture first.
Sign in to reply to this topic.