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Why isnâ??t the semi variable overhead segregated into variable and fixed? The distribution is plainly on the basis of time, which is wrong
Answers (4)
roshini reddy
It is not divided just on basis of time read the question , they gave first 3 months was 50% capacity and rest 9 months 80% the division is based on that and then as 20L is per annum we find for 3 months and 28L ( as 20L+ 4L+4L) is for 9 months
I know. But when we got to know that for 9 months it is 21L, why didnt we segregate it into fixed and variable.?
Thread Starter
Aman MahajanI know. But when we got to know that for 9 months it is 21L, why didnt we segregate it into fixed and variable.?
this is not proper cost sheet , you can segregate and show or also present as given in answer , it is a matter of presentation.