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MA Ltd provides online educational services to their clients in the higher education sector. The company offers its products in a package which includes

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MA Ltd provides online educational services to their clients in the higher education sector. The company offers its products in a package which includes online courses and supporting materials for follow up reading and self-paced practices. In the recent years, the company has experienced rapid growth rate and is operating beyond its initial expansion plans. While the management is excited about the growth, it is also concerned about the rising operating costs, particularly the overhead costs. The company operates a standard costing system and all departments are required to participate in the system. The current company policy is to allocate production overheads using the direct labour hours. As the management accountant in the company, you have gathered the following information about the planned overhead costs and the actual amount incurred, as follows. Planned information for the period under review: To complete 8,500 packages Standard direct labour hours is 8 hours per package Variable overhead costs was expected to be 54,400 Fixed overhead costs was expected at 136,000. Actual information for the same period: Completed 8,700 packages Assessment 2021-2031 Need Help? Contact us 1 (800) 265-6038 01 80471-09130

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