Allocation of fixed oh on low production.


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Querist : Anonymous

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Querist : Anonymous (Querist)
17 February 2014 Why is the amount of fixed overheads allocated to each unit not increased as a result of low production or idle plant?

17 February 2014 FOH is to be absorbed on the basis of budgeted capacity. Any over / under absorbed overheads are to be charged to P & L a/c. separately.

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Querist : Anonymous

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Querist : Anonymous (Querist)
18 February 2014 Thankyou for your reply!


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