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Hi sir, I hope you are well. I am bit confused when calculating absorption rate based on labour hours. Do we only take budgeted overheads allocated or apportioned? Or do we add them both and devide them by budgeted level of activity.
For example (random figures)
Allocated : £25,800
Apportioned: £16200
Budgeted activity: 3000 hoursMany thanks
You take the total overheads whether they are allocated or apportioned.
Have you watched my free lectures on this? The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
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