Abc

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January 26, 2019 at 8:00 pm #503350
t9hassan
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Hi,
How we should absorb the follow amounts in two departments A and B?

Overhead $100
Indirect labour cost for department A $30.
Indirect labour cost for department B $20.

Ddpartment A has 20 labour and B 15 labour….

I dont know that the indirect labour cost for every department should be allocate for exactly itself DEPARTMENT? Or should be absorbed to both departments?

Best Regards
Hassan
January 27, 2019 at 10:13 am #503404
John Moffat
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Labour costs given specifically for each department are allocated to the respective departments. It is only the general overheads that need allocating between the departments.
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