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Overheads - Absorption costing
Illustration 5 Other overheads Why should we use machine hours for other overheads
Answers (2)
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
