Calculate an absorption rate for overheads based on direct labour hours 3 Q R Copra Ltd manufactures

Calculate an absorption rate for overheads based on direct labour hours

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3 Q R Copra Ltd manufactures three products Q, R and S. Below are the output and cost data for the period just ended. A B S Out put 20 10 100 Insert Table Chart Text Overhead costs No. of production runs Variable costs Set-up costs C 2 3 Material handling costs 4 Initiating and scheduling costs D Material cost per unit (£) Shape 30 37 60 Media Comment 80 E Direct labour hours per unit 1 3 3 The direct labour cost per hour is £10. The overhead costs for the period are as follows: F Machine hours per unit a. From the information above, calculate an absorption rate for overheads based on direct labour hours. (2 marks) £2,960 £11,220 £9,300 £8,020 1 £31,500 3 3 || 3 Q R Copra Ltd manufactures three products Q, R and S. Below are the output and cost data for the period just ended. A B S Out put 20 10 100 Insert Table Chart Text Overhead costs No. of production runs Variable costs Set-up costs C 2 3 Material handling costs 4 Initiating and scheduling costs D Material cost per unit (£) Shape 30 37 60 Media Comment 80 E Direct labour hours per unit 1 3 3 The direct labour cost per hour is £10. The overhead costs for the period are as follows: F Machine hours per unit a. From the information above, calculate an absorption rate for overheads based on direct labour hours. (2 marks) £2,960 £11,220 £9,300 £8,020 1 £31,500 3 3 ||

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To calculate the absorption rate for overheads based on direct labour hours follow these steps 1 Cal... View the full answer