20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for December 2025 exams.
Get your discount code >>

OAR QUESTION

This topic has 1 reply, 1 voice, and was last updated 1 year ago by abdulvarisvk234.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
July 31, 2023 at 12:22 pm #689186
Anonymous
Inactive
- Topics: 1
- Replies: 0
the following information is available:
Allocated $13122
Apportioned $7920
Reapportioned from service cost centres $2988
216000 units of product are manufactured at a rate of 120 units per machine hour.
Req: calculate the OAR per machine hour.
Please advise on this.
September 27, 2023 at 6:11 am #692559
abdulvarisvk234
Participant
- Topics: 0
- Replies: 2
Total fixed production cost=13122+7920+2988=24030
120 units takes 1 hour, so we are having 216000.
so, it takes 1800 hours, cuz, 216000/120.
so now u have got hours and total production overhead.
24030/1800=13.35$/machine hour is the OAR per machine hour here.
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.