cannot be used as
base for the determination of
overhead absorption rate?
Answers
Answered by
0
Explanation:
Absorption of Overheads: Definition, Bases and Methods
The overhead to be absorbed by a cost unit is computed with reference to two factors:
These bases are:
Selection of Base:
Direct labour hour basis:
Machine hour rate:
Direct Material:
Though this method is simple and easy to understand and apply, it suffers from the following disadvantages:
Direct Wages:
Similar questions