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Target Costing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Target Costing

  • This topic has 4 replies, 3 voices, and was last updated 7 years ago by John Moffat.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • October 20, 2015 at 6:32 pm #277901
    Chandni
    Member
    • Topics: 6
    • Replies: 5
    • ☆

    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.

    October 20, 2015 at 7:03 pm #277914
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51563
    • ☆☆☆☆☆

    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.

    October 20, 2015 at 8:16 pm #277927
    Chandni
    Member
    • Topics: 6
    • Replies: 5
    • ☆

    Thank you! 🙂

    October 20, 2015 at 11:55 pm #277949
    walay
    Member
    • Topics: 1
    • Replies: 1
    • ☆

    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

    October 21, 2015 at 7:50 am #277992
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51563
    • ☆☆☆☆☆

    The ACCA have stopped publishing the MCQ’s 🙁

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