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MOCK EXAM 2 pg 325 num 3

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › MOCK EXAM 2 pg 325 num 3

  • This topic has 3 replies, 2 voices, and was last updated 4 years ago by John Moffat.
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  • May 11, 2021 at 7:19 pm #620336
    Shi2004
    Participant
    • Topics: 79
    • Replies: 33
    • ☆☆

    How to find the fixed cost sir?

    May 12, 2021 at 7:55 am #620365
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54700
    • ☆☆☆☆☆

    Multiply the budgeted production by the fixed overhead per unit for each product, and add the two together.

    If only P1 is made then the specific fixed costs for P2 will not occur, but the rest of the fixed costs will.

    May 13, 2021 at 6:21 pm #620525
    Shi2004
    Participant
    • Topics: 79
    • Replies: 33
    • ☆☆

    Why if p1 is made the specific FC for p2 will not occur??

    May 14, 2021 at 8:56 am #620553
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54700
    • ☆☆☆☆☆

    Because they will then not be making P2 and if they are not making P2 the specific fixed costs for P2 will not be incurred.

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