Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Absorption and Marginal costing
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- December 24, 2020 at 6:42 pm #600827
Sir I found a question in the study text and I am confused by this
It gave the format for the absorption costing statement and I needed to find the under/over absorption of overheads
When I was trying to find it I noticed that they haven’t used he correct equation I think and have used actual fixed production costs-standard fixed production costs
I thought that when finding overhead costs that we need to deduct standard fixed production overhead cost from actual fixed production costs
Sir this was the data that was given
$Fixed production overhead. 5
The fixed production overhead figure has been calculated on the basis of a budgeted normal output of 36000 units per annum. The fixed production overhead incurred in March was $15,000
No of units produced
Produced 2000 unitsSir in this question did they use
Standard fixed production overhead cost- Budgeted fixed production overhead cost because they haven’t given the actual figuresIs that the reason they have calculate under absorption like this?
December 25, 2020 at 11:41 am #600846I don’t think you have typed out the whole question.
The actual overheads are $15,000 but there is not the information to calculate the absorption rate.
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