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Forums › ACCA Forums › ACCA MA Management Accounting Forums › over /under absorption
hello sir
question 22 in mock exam of open tution
what is under /over absorption of fixed overhead?
my answer is
oar=8×3=24
overhead absorbed is 24×90000=2160000
actual absorbed is 700000
2160000-700000=14600000 over absorbtion
which is wrong
and what is the use of opening and closing inventory in under and over absorption i really get confused and u explain how to do this question
thanks
I am sorry, but because they questions are delivered in a random order, it is not always question 22!
I am afraid that you will need to cut and paste the question and then I know which one it is.