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Overheads chapter

Costing

When caluclate supplementary OHRR , that supplementary whether always add only to revised cost sheet or deduct also

OMKAR REDDY

CA Inter

★ 6K+

06-Apr-21 15:21

315

Answers (2)

Under-absorption is adjusted by using a plus supplementary rate while a minus supplementary rate in used to correct over-absorption. That means that If it is over absorption we deduct the supplementary amount and if it is under absorption, it should be added to the cost sheet.