Types of overhead absorption rate, Cost Accounting

Types of Overhead Absorption Rate

NB: Overheads incurred are generally absorbed on the basis of budgeted or estimated figures. The given basis may be applied leading to the specified types of rates.

  1. Percentage of direct material cost = (overhead cost / Direct material cost)x 100
  2. Percentage of direct labour cost = (overhead cost/Direct labour cost) x 100
  3. Direct prime cost = (overhead cost/Prime cost) x 100
  4. Labour hours = overhead cost/Labour hours
  5. Units of output = overhead cost/Units of output
Posted Date: 2/5/2013 7:16:06 AM | Location : United States

Related Discussions:- Types of overhead absorption rate, Assignment Help, Ask Question on Types of overhead absorption rate, Get Answer, Expert's Help, Types of overhead absorption rate Discussions

Write discussion on Types of overhead absorption rate
Your posts are moderated
Related Questions
Purpose of Cost Estimation In estimating it assists the future expenditure as cost prediction like the expenditure will depend upon the cost of the respective activities a)

L ABOUR VARIANCES Labour Cost Variance (LCV) Described by the ICMA, London, 'Labour cost variance is the variation between the standard direct wages specified for the pro

M aterials mix variance :  It can be described as that portion of direct material usage variance which is the variation between the actual quantities of ingredients used in a mi


Total Variable Overheads Variances  If Variable Overhead Expenditure Variance =  Shs.1, 330 Variable Overhead Efficiency Variance = Shs.320 Then total variable overheads

Vince's Pizza delivers pizzas to dormitories and apartments near a major state university. The company's annual fixed costs are $48,000. The sales price averages $9, and it costs t

Time Rate System - Labour Remuneration It may be a high day rate or a flat time rate. Under flat time rate, all worker is paid for the time spend without considering the vol

What is the major value of the weighted cost of capital calculation for the firm?

Standards and Budgets Budgets like you recall from the previous section, are simply plans for expected future performance expressed in quantified monetary terms. Therefore the

are eploration costs of a mining industry regarded as an asset or expense or both?