XYZ ltd. which absorbs overheads at predetermined rates provides you the
following information:
Overheads actually incurred ₹200000
Overheads absorbed ₹150000
Goods sold 13000 units
Stock of finished goods 10000 units
Stock of work in progress 10000 units (20% complete)
Unabsorbed overheads were due to rising price levels. How would under
absorbed overheads be treated in cost accounts?
Answers
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