If a company is manufacturing 60,000 units which is at 60% of the potential capacity and fixed overhead per unit is given. While preparing Income statement for 60,000 units fixed overhead will be charged for 60000 units or for 100000 units and why?
2 Replies
Tejas Jain
(Chartered Accountant)
(314 Points)
Replied 15 May 2012
it Should be Charged at 100000 Units not at 60000 units because while calculating Fixed Overhead Rate per unit compny cosiders the Potential capicity and not the actual capicity.
Tejas Jain
(Chartered Accountant)
(314 Points)
Replied 15 May 2012
Is this a Photo of Marine Drive...? Are you from Mumbai...?
Recent Topics
- Form 3CEAB
- Form 3CEAA and Form 3CEAB
- DIR 3 Web KYC
- Can i declare LTCG income as business income if I
- Stock entry in new software
- I have an EMI collection shop, what is its SAC cod
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
- ITC reversal in GST 3B
Related Threads
CAclubindia
