20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Absorption and variable costing

This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
August 16, 2016 at 4:51 pm #333648
njivan28
Participant
- Topics: 35
- Replies: 42
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?
August 17, 2016 at 5:52 am #333708
John Moffat
Keymaster
- Topics: 57
- Replies: 54699
You 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.
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.