The production overheads were budgeted on the Following cost-volume relationship:
Units oF production 33000 23000
Cost-Dollars 279000 249000
30 000 Units is the normal production
How do you Find the Fixed absorption rate?
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Absorption and variable costing
10y ago#1You use the high low method to calculate the fixed overheads per period.
Then you divide by the normal level of production to calculate the fixed overhead absorption rate.
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