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JUN 2005 Q1 CHAPTER 7

Forums › FIA Forums › JUN 2005 Q1 CHAPTER 7

  • This topic has 2 replies, 2 voices, and was last updated 3 years ago by mawar.
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    Posts
  • September 23, 2022 at 3:41 pm #667077
    mawar
    Participant
    • Topics: 5
    • Replies: 1
    • ☆

    Machine hours are used to absorb overheads in a production cost centre. Overheads allocated and apportioned to the cost centre are:

    Allocated $ 13,122
    Apportioned $ 7,920
    Reapportioned from service cost centres $ 2,988

    216,000 units of product are manufactured at a rate of 120 units per machine hour.

    What is the overhead absorption rate per machine hour?
    A. $7·29
    B. $11·13
    C. $11·69
    D. $13·35

    Please help me with this ques

    September 24, 2022 at 8:27 am #667127
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10606
    • ☆☆☆☆☆

    Total overheads to be absorbed = 13122 + 7920 + 2988 = 24030

    Total machine hours needed = 216,000/120 = 1800

    OAR/hour = 24030/1800 = 13.35.

    September 24, 2022 at 9:53 am #667135
    mawar
    Participant
    • Topics: 5
    • Replies: 1
    • ☆

    thank you

  • Author
    Posts
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  • The topic ‘JUN 2005 Q1 CHAPTER 7’ is closed to new replies.

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