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Forums › ACCA Forums › ACCA APM Advanced Performance Management Forums › Kaplan Exam kit – question 44
Hi
Could anybody explain how to calculate variable overheads material and labour related under current basis ?
It says that company is using for absorbing these costs company wide percentages ?
What does it mean ?
thank you.
Total overheads = 2400k
Direct materials o/h = 2400k x 30% = 720k
Total direct material cost = 450k + 150k + 1200k = 1800k
Direct materials o/h per product:
– Fountain = 720k x 450k / 1800k = 180k
– Per unit = 180k / 2000 = 90
Labour follows the same logic.