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Course-Cost Accounting IPC (OLD) - Illustration 10 (With reference to Video Lecture - For Nov 2020 Exam) In the question, the Direct Labour Hour Rate is given as 15/hr as per Estimates. Actuals change the Labour hours for the week to 2400 from 3000. So does this not affect the absorption of Labour Cost if we are still following 15/hr rate?


Karthik M

Karthik M

CA Inter

0

11-Oct-20

40

Answers (5)

Rate will remain same.


Suraj Lakhotia

Suraj Lakhotia

Admin

14-Oct-20

Suraj Lakhotia Admin

Rate will remain same.

One more doubt, Is absorption applicable to all overheads - Selling & Distributions/Admin ?


Thread Starter

Karthik M

Karthik M

CA Inter

0

15-Oct-20

Thread Starter

Karthik M

One more doubt, Is absorption applicable to all overheads - Selling & Distributions/Admin ?

Admin Overheads are period costs and are not added to cost of products.


Suraj Lakhotia

Suraj Lakhotia

Admin

16-Oct-20

Suraj Lakhotia Admin

Admin Overheads are period costs and are not added to cost of products.

Selling and Distribution?


Thread Starter

Karthik M

Karthik M

CA Inter

0

16-Oct-20

Thread Starter

Karthik M

Selling and Distribution?

Same.


Suraj Lakhotia

Suraj Lakhotia

Admin

17-Oct-20

All the Best
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