Skip to content

Ask the Tutor ACCA PM

Target Costing

CChandni10y ago
Hey there! I am doing Dec.2007 question- Edward Co. and i need help in calculating the fixed production overheads per unit if you could assist me in there. I managed to calculate variable overheads using the high low method.
John MoffatJohn MoffatTutor10y ago#1
You say that you have calculated the variable overheads OK - they are $20 per hour. If you look at month 1, the total overheads are 620,000. The variable overheads total 19,000 x 20 = 380,000. So the fixed overheads in total are 620,000 - 380,000 = 240,000. (you can get the same figure by looking at month 2 instead). In a typical year, the work 240,000, or 240,000/12 - 20,000 per month. So the fixed overheads are 240,000 / 20,000 = $12 per unit.
CChandni10y ago#2
Thank you! :)
Wwalay10y ago#3
Hi there I just want to ask you a quick question, I am doing a module in uni that is similar or in fact same F5 paper. one thing I notice is that our December 2014 MCQ paper have questions that I found in the F5 paper of 2014. so if both paper are made at the same time or ACCA board does F5 paper a bit early. please let know about this also is there anyway I can find F5 2015 MCQ paper. Thanks
John MoffatJohn MoffatTutor10y ago#4
The ACCA have stopped publishing the MCQ's :-(
Sign into reply to this topic.