Question

CASIO is a fully automated electronics manufacturing company. Company is incurring a lot of overheads in its manufacturing department. Cost accountant of the company wants to use machine hour rate method for the absorption of manufacturing overheads and seeks your help. You are required to prepare a report detailing the method, its suitability, steps in its computation and the advantages and disadvantages of using it.

Answer 1

CASIO is a fully automated electronics manufacturing company. Company is incurring a lot of overheads in its manufacturing department.