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Absorption and variable costing

This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.

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August 16, 2016 at 4:51 pm #333648
njivan28
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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
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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.
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