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over /under absorption

Forums › ACCA Forums › ACCA MA Management Accounting Forums › over /under absorption

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.
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  • Author
    Posts
  • August 26, 2014 at 3:58 pm #192417
    uzma
    Member
    • Topics: 7
    • Replies: 19
    • ☆

    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

    August 26, 2014 at 7:42 pm #192443
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54684
    • ☆☆☆☆☆

    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.

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