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John Moffat.
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Omolola99
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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
John Moffat
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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.
Omolola99
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