UK Accounting question involving overhead costs


Joined
Jan 1, 2018
Messages
2
Reaction score
0
Country
gb
https://imgur.com/a/BTnhX

Hi,

I have only started learning about accounting not long ago, so I'd like some help please. The link above shows a question that I am not completely sure about. If the total direct labour hour is 160000 for the basic quality and 60000 for super quality, the total direct labour hour will be 220000hrs. Thus the overhead recovery rate is £4.545 per direct labour work. I don't get why when calculating the overhead cost for both qualities, 160000 and 60000 are not used.

Instead, overhead costs = 4.5454 and 4.5456.

Thanks.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads


Top