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Overheads absorption

This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.

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April 5, 2021 at 12:47 pm #615982
Sourav9271
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https://photos.app.goo.gl/AsbvmUK7z69PMsNe9
Sir if costs vary with production level shouldn’t th driver be volume i.e overhead absorption on unitary basis
Ex:. Total fixed o/h
——————————–= OAR per unit
Cumulative volume
April 5, 2021 at 3:40 pm #616007
John Moffat
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No, because the production in units for each of the products will most likely depends on the labour or machine time per unit.
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