I'm trying to work out the overheads for Labor Hours
Labor Hours 72000
Production Time: 30 Minutes
I have calculated:
Absorption rate: 525000/72000 = 7.29
7.29 / 60 = x
x * 30 = 3.65
But on the website I'm using it says the answer is 2.43. What am I doing wrong? Thanks!!
What am I doing wrong?? Labor hours Watch
- Thread Starter
Is the production time 20 minutes as the answer seems to indicate it assumes that is the case?