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Idle time in F.O.H absorption

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Idle time in F.O.H absorption

  • This topic has 3 replies, 2 voices, and was last updated 9 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • November 17, 2015 at 6:49 am #283206
    alawi sayed
    Participant
    • Topics: 301
    • Replies: 352
    • ☆☆☆☆

    Hello Sir,

    If there is there is an Idle time in assembly hours
    why should we don’t consider while absorping the fixed overhead

    like in Ewdard ltd q in BPP mock exam 2 ,

    Thanks,

    November 17, 2015 at 8:16 am #283240
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    We assume always that we only incur overheads during hours actually worked.

    It is only with labour that we might be paying them for more hours than they work (because of idle time), but again we assume that while they are idle then the company is not incurring overheads.

    November 17, 2015 at 1:19 pm #283328
    alawi sayed
    Participant
    • Topics: 301
    • Replies: 352
    • ☆☆☆☆

    Thanks a lot Mr John,

    November 17, 2015 at 2:36 pm #283387
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    You are welcome 🙂

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