Sir,
Although I have watched lectures attentively but
In example 1 (pg 33) We absorbed overheads using units since there was only one product
In Example 2 We absorbed using labour per hours $ basis..
So will there be questions asking to absorb cost using materials per kg $ basis?
And if there would be question like that can you please give me examples of overheads associated with Materials..
I am clear with overheads associated with labour i.e repair maintenance staff, supervisors, Factory Cleaning
But I am confused with materials overheads
Ask the Tutor ACCA MA
Absorption of overheads
5y ago#1You could be asked to calculate an absorption rate on any basis, included using materials.
An example of an overhead for which materials would be a suitable basis would be the costs involved in the department that issues the materials for production from the stores.
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