Asked by Claire
A company produces just one standard product. The company's budgeted overheads for the next financial year are £80000.
Other relevant information includes:
Budgeted Production: 16000 units
Cost of Raw Material per unit: £4
Cost of Direct Labour per unit: £4
Standard Machince Hours per unit: 4
Required:
Calculate three different overhead absorption rates.
Can someone please help me because I don't have an idea how I can arrive to these rates?
Other relevant information includes:
Budgeted Production: 16000 units
Cost of Raw Material per unit: £4
Cost of Direct Labour per unit: £4
Standard Machince Hours per unit: 4
Required:
Calculate three different overhead absorption rates.
Can someone please help me because I don't have an idea how I can arrive to these rates?