questions of absorption costing and abc

Why are you attempting questions for which you do not have answers? You should be using a Revision Kit from one of the ACCA approved publishers - they contain answers and explanations. Q1. You know what the total overheads are (420,000) The question says that they are absorbed on labour hours, so you can calculate the total labour hours (((5 x 1,200) + (5 x 12,000) = 66,000) Therefore the absorption rate is 420,000/66,000 = $6.364 per hour. Therefore the overhead cost of Beta is 5 hours x $6.364 per hour. Q2 is approached in exactly the same way. You have headed up your post 'absorption costing and ABC', but these two questions have nothing to do with ABC because they both say that they are using traditional absorption costing on the basis of labour hours. You should watch my free lectures because all of this is explained in the lectures. The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.

Yes - it is right.