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Practical question 5 icai The variable overhead for 2021-22 How will it be 112500 in total
Answers (29)
Thread Starter
mani charanY
Variable Factory overhead is absorbed as a percentage of direct wages So A wages is 37500 Bs 25000 Cs 50000
Kumar G
Variable Factory overhead is absorbed as a percentage of direct wages So A wages is 37500 Bs 25000 Cs 50000
100000 should be distributed in that percentage right?
Thread Starter
mani charanIn the question that did not say about the increase in the variable overheads why did the consider that increase
Yes they also mentioned that as a percentage of wages right!
Kumar G
Please read the question once
Which point,that point they told vc r absorb in percentage of dw so 100000 shd be absorbed in the dw ratio ,y is an increase in vc cosidered
Thread Starter
mani charan100000 should be distributed in that percentage right?
No,they didn't mention that you should allocate 1,00,000 They mentioned that Variable factory overhead will be as a percentage of direct wages . If direct wage 100 then Variable factory overhead should be 100 na!
Thread Starter
mani charanSorry bro i didn't get you
No mention, Which is in ICAI study material absolutely correct! Thank you
Kumar G
No mention, Which is in ICAI study material absolutely correct! Thank you
Bro what is the meaning of absorbed as a percentage of dw
Thread Starter
mani charanBro what is the meaning of absorbed as a percentage of dw
multiply the % given with direct wages expenses and take that as the amount
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