a Give three reasons why over or under absorption of overheads may arise b Calculate the amount of over under absorption of overheads (if any) given It is considered that overhead absorption based on labour hours is the most appropriate basis for Cost Centre 258 Cost Centre 258 for Period 2 Budgete...

a Overheads not as budgeted Activity leve ...

a. Give three reasons why over or under absorption of overheads may arise. b. Calculate the amount

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a. Give three reasons why over or under absorption of overheads may arise.

b. Calculate the amount of over/under absorption of overheads (if any) given:

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It is considered that overhead absorption based on labour hours is the most appropriate basis for Cost Centre 258.

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Costing

ISBN: 9780134789705

6th Edition

Authors: Terry Lucey

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Question Posted: May 21, 2024 03:04 AM

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a. Give three reasons why over or under absorption of overheads may arise. b. Calculate the amount

Question:

Cost Centre 258 for Period 2 Budgeted Actual Direct labour hours 5,600 5,925 Direct wages 19,040 20,450 Machine hours 3,300 3,418 Direct materials 26,200 28,213 Units produced 81,000 85,296 Overheads 57,500 61,257

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Costing

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