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PM Test 1:
Question 3 (Product P&Q):- On the answer the ‘other overheads’ are divided by 115,200, could you please advise from where we got this no?My calculation was (230,400/(8+10))*10 = 128,000
Thank you
Did you watch the free lectures before attempting the test, because this is very similar to an example I work through in the lecture and I stress the importance of watching out for something like this!!!
Other overheads are absorbed on the basis of labour hours. The total labour hours being worked are: for Product A: 2400 units at 8 hours per unit = 19,200 hours; and for Product B: 9,600 units at 10 hours per unit = 96,000.
So the total hours are 19,200 + 96,000 = 115,200.Please do watch the free lectures. They are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.
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