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Question

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Question

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
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    Posts
  • April 20, 2021 at 1:29 pm #618299
    Omolola99
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    Please I need explanation on whether learning curve would affect variable overheads in a question like this:

    Material (200kg @ #20/kg)
    Labour (400hrs @ #10/hr)
    Variable overhead (400 hrs @ #7/hr)

    The question is silent on whether labour hours affect variable overheads

    April 20, 2021 at 5:38 pm #618319
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51583
    • ☆☆☆☆☆

    Given that the variable overheads are obviously based on labour hours from the question, then learning curves will affect the variable overheads in the same way as they affect the labour cost.
    If less time is spent on labour, then automatically less time will be spent on variable overheads.

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