Question

Data for department Y for the latest period is as follows:

Budgeted direct labour hours is 12,300

Actual direct labour hours is 11,970

Production overhead absorption rate is GHȻ2. 60 per direct labour hour

Production overhead under absorbed is GHȻ5,670

Calculate the actual production overhead incurred during the period

Answer 1

Answer is as follows

Step-by-step explanation:

To calculate the actual production overhead incurred during the period, we need to use the formula:

Actual production overhead = Production overhead absorption rate x Actual direct labor hours

Actual production overhead = GHȻ2.60 x 11,970

Actual production overhead = GHȻ31,122

Therefore, the actual production overhead incurred during the period is GHȻ31,122.

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