Allocation of fixed oh on low production.
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
17 February 2014
Why is the amount of fixed overheads allocated to each unit not increased as a result of low production or idle plant?
17 February 2014
FOH is to be absorbed on the basis of budgeted capacity. Any over / under absorbed overheads are to be charged to P & L a/c. separately.
Thanks!
Thanks!
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Querist : Anonymous
Querist :
Anonymous
(Querist)
18 February 2014
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