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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
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