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In lecture video of hourly absorption rates rules you wrote (Budget/Actual Amount).Actual was $315,500 and Budget was $320,000.How was that (Actual/Budget) ?
I certainly do not think I said that!!
Please tell me which lecture you are talking about so that I can check (and explain).
In lecture video of Absorption Costing Part 2.Chapter 8-Profit Statement-Absorption Costing,Example-2.In Hourly Absorption Rate formula.You wrote it.That confused me.
What I was actually saying was that you compare the amount absorbed with the actual or budget total fixed overheads, depending on the question and what you are being asked to do.
If you are preparing budgets then you compare with the budget total. If you are preparing actual statements you compare the the actual total (and if you are not told the actual total then you assume it is the same as the budget total).
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