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Over or under absorbed

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Over or under absorbed

  • This topic has 0 replies, 1 voice, and was last updated 9 years ago by airix22.
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  • August 13, 2015 at 12:53 pm #267065
    airix22
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    Selling price : Rm48/unit
    Cost :
    Direct material : Rm10/unit
    Direct labour : Rm12/unit
    Variable Overhead : Rm4/unit

    Production : Period 1, 11000 unit Period 2, 12000 unit
    Sales : Period 1, 10000 unit Period 2, 11500 unit

    Company A budgeted Rm160,000 on their fixed production overhead and a budgeted production of 10,000 units per period. Fixed selling and administrative expenses per period is RM22,000

    Calculate the overhead over or under absorbed for both period, if full absorption cost is used.

    NEED help ? TQ

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