fixed overhead(absorption)

Question

1.)under/over absorption overhead點計？

系用actual OH - budget OH定系 budgeted OH- actual OH??

2.)點解有時候條題目已經提及OH的數目，點解仲要計多一次？

3.)點樣睇要計under/over absorption overhead？幾時要？(當要做absorption income statement)

Answer 1

最愛解答

absorption OH is calculated by POAR X activity

since POAR is preset, it is budget OH

actual OH can only be known after the production finished

budget OH-actual

if it is +ve, it is over

-ve, it is under

2) the OH stated may be actual, then u may required to cal the budget( POAR X activity)

3)

since OH is budget not actual, if it is over absobed, u have to minus the difference under the cost of sales, so that the profit will not be understated.

Vice versa