Qualification > Commerce
all acc doubts here !!
pastyear:
skywalker112233 , i think you can help me explain my accounting doubts that i posted to test your skills
Thanks
***exam***:
we seriously need an angel in this thread !! :(
immortal:
I'll b happy, 2 clear any doubts, 2 da best of ma knowledge..
***exam***:
--- Quote ---immortal, refer to the question that you did before you go Q1,
1) how to find the machine hours ratio?
2) what do you mean by deduct fixed costs of Fixed costs as per ratio?
3) Why do we do this?
36*0.75=27
36*0.5=18
36*2/3=24
36*0.5=18
4) How to get the contribution of 36 ,32, 45 , 55?
--- End quote ---
then please do clear this 1
immortal:
--- Quote from: ***exam*** on May 17, 2010, 08:58:07 pm ---then please do clear this 1
--- End quote ---
1)In da question its time taken is given in minutes, so i converted dem 2 hours
which allowed me to use da eqn
O.A.R=overhead/machine hours
OAR is given as $36
overhead=OAR*machine hours
for da first product
36(OAR)*0.75(machine hrs)=27(fixed overhead)
Now do this 4 da rest of da products.
4 da 1st product da profit is 9
add back fixed overhead($27) 2 get contribution
which comes 2 $36
Does this solve ur doubt.
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