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Overheads - Absorption costing

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

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S.K Anusha

S.K Anusha

CA Inter

850

09-Jan-21 20:28

22

Answers (2)

Other basis not available.


Suraj Lakhotia

Suraj Lakhotia

Admin

11-Jan-21 10:17

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


Star Ca

Star Ca

CA Inter

3K+

07-Mar-21 15:45

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