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
Bull Bay Ltd. Manufacturers two types of surfboard, "Winner" and "Surf King", whose selling prices are $300 and $900 respectively. Each surfboard passes through two manufacturing d

Bubble Corporation manufactures two products, I and II, from a joint process. A single production costs $4,000 and results in 100 units of I and 400 units of II. To be ready for sa

Now assume that it is possible to distinguish consumer types one and two and there are no consumers of type three and the firm can charge a two part tariff. What would the optimal

Disadvantages of Standard Costing 1. The system of standard costing is very expensive to install : A lot of money is spent in studying output requirements in terms of materia

Comparison between Marginal Costing and Absorption Costing There are accountants who favour all costing method. Arguments in favour about absorption costing are specified a

a company has the budget for manufacturing overhead based on direct labor hours. budgeting at 10,000 direct labor hours are as follows. Variable costs= 160000 Fixed Costs

Relevant Costs and Decision-Making The relevance of costs will depend upon the purpose for that they are being utilized. Relevance is related to future decisions. The relevanc

Direct material yield variance (MYV) :   It has been described by the ICMA, London, as 'the variation between the standard yield of the actual material input and the actual yi

BUDGET A BUDGET is a quantitative expression of a business plan for a particular future period, generally a year. BUDGET is the planned future course of action. BUDGET

Direct and Indirect costs Recall such direct costs are costs which can be traced particularly to the end product of the production procedure while indirect costs cannot be so