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Overheads

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Overheads

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
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  • Author
    Posts
  • May 28, 2024 at 7:29 pm #706200
    lalan3
    Participant
    • Topics: 10
    • Replies: 16
    • ☆

    Shakes co absorb production overheads at the rate of $1.20 per machine hour.

    The monthly date for April 20×6 is as follow:

    Production overheads $20,500

    Machine hours 20,200

    Which of the following amounts would be shown as a DEBIT entry on the production overhead account?

    1.Production overheads absorbed $24,240
    2. Production overheads incurred $20,500
    3.Over absorption of production overheads $3,740

    Doubt:
    Why the answer is only option 3 not option 2 also

    May 29, 2024 at 7:50 am #706211
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    It is option 2 also.

    Where did you find this question? 🙂

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