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absorption of fixed overheads

Costing

answered on 19-Mar-22 11:19

fixed overheads absorbed on the basis of normal production capacity. My question is ,How to absorb fixed overheads if a factory uses Machine hour rate or labour hour rate as absorption method? In my view they don't need to consider normal production or output capacity, as this is irrelevant, they'll have to absorb on the basis of effective machine hour rate or effective labor rate. Is this understanding correct?

latest answer

If a factory absorbs fixed overheads using machine hour rates, machine hour rates would be computed based on normal production only.

Mansha Tutlani

Mansha Tutlani

CA Final

555

3

512

Lifting of corporate veil

Corporate & Other Laws

answered on 14-Mar-22 18:03

Is this concept removed from law in May 2022 amendments??

latest answer

TQ u sir

Priyanka R

Priyanka R

CA Final

20K+

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474

Rotation of Auditors

Auditing

answered on 15-Mar-22 10:20

Whether rotation of auditors provision applicable to government company?

latest answer

Existing auditors that is Same auditor or firm of auditors can be appointed as auditor in next AGM subject to rotation conditions. when an auditor completes 1 term of 5 years or a firm completes 2 terms of 5 years, then existing auditors will not be appointed.

Divya Sri Vemavarapu

Divya Sri Vemavarapu

CA Final

15K+

3

501

Maximum Marginal Rate

Direct Taxation

answered on 14-Mar-22 21:56

Highest Rate 30% (30) Surcharge 37% (11.10) HEC 4% (1.64) MMR = 42.74 How are the values 30, 11.10 & 1.64 derived?

latest answer

Highest slab rate + surcharge + health and educational cess

Swetha S

Swetha S

CA Inter

15K+

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Income from salary

Direct Taxation

answered on 22-Mar-22 07:40

Sir how to treat travelling allowance below the 2 questions

latest answer

Mr.Malesh Thanks

Hemanth kumar Kumar

Hemanth kumar Kumar

CA Final

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3

850

Doubt

Accountancy

answered on 16-Mar-22 09:03

In this question , have they made an assumption that balance deposits are secured by tangible assets...?

latest answer

Ok sir

Sri kanaga Varshini

Sri kanaga Varshini

CA Final

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Contract Act

Corporate & Other Laws

answered on 14-Mar-22 16:59

1)When is an agreement between husband and wife,husband agreed to give a necklace if she passed her exam.then they made written agreement. Is fulfilling conditions of contract? 2)Balfour vs Balfour If they made written agreement,then the husband is liable to pay the amount to his wife?

latest answer

If they made written agreement and it is registered under law, then the husband is liable to pay the amount to his wife

mcmuhammadthaha mcthaha

mcmuhammadthaha mcthaha

CA Final

0

5

557

Callable & puttable bonds

Financial Management

answered on 14-Mar-22 08:27

Can anyone explain callable &puttable bonds with examples.

latest answer

Call gives and option to buy. So the company can buy back the bonds. Investor will have to sell. Put gives an option to sell, investor can sell at his option to the company. Company is obliged to buy.

Sajeetha R

Sajeetha R

CA Final

46K+

1

573

Income from salay

Direct Taxation

answered on 14-Mar-22 10:38

How to treat encashment of earned leave on the below problem

latest answer

If leave is encashed during employment - It is fully taxable.

Hemanth kumar Kumar

Hemanth kumar Kumar

CA Final

750

1

553

Sa 320

Auditing

answered on 14-Mar-22 17:15

Can any one explain reason of underlined part

latest answer

Ok thank you

Pandusml V

Pandusml V

CA Final

4K+

5

649