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Hi Tutor would you be able to help me with Linacre Co question?
Hi can someone help me? It might be a silly question however I don’t understand how they arrive to 10 runs to calculate set ups for Overheads.
Also they are using 10 annual cost against set-ups, where this come from?Thanks
In future you must ask in the Ask the Tutor Forum if you are wanting me to help you – this forum is for students to help each other 🙂
The total number of units of ZT3 is 100 order of 60 units, plus 60 orders of 50 units. This comes to a total of 9,000 units.
Since the produce in batches of 900 units each time, it means they will have 9,000/900 = 10 production runs.
Also, 10 runs will need that they need 10 set-ups.(Have you watched my free lectures on ABC? My lectures are a complete free course for Paper F5 and cover everything needed to be able to pass the exam well 🙂 )
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