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Overheads - Absorption costing

Costing

Illustration 5 Other overheads Why should we use machine hours for other overheads

S.K Anusha

CA Inter

★ 15K+

09-Jan-21 20:28

402

Answers (2)

Best Answer

Generally our assumption is other overheads are incurred for labour working in organization. So, priority would be. labour hrs > no: labours> direct labour> m/c hrs etc..,......but we have to write our assumption in notes.....but in this question we don't have these many options....so we take m/c hrs