Friends,
As per AS 2, allocation of fixed production overhead is to be done on normal capacity of production. If a company produced product more than normal capacity then which capacity to be considered ?
Menu
AS - 2
Replies (3)
when company actually works at more than normal capacity level, allocation of fixed overheads under Actual Capacity.
suppose normal capacity is 1000 units. actual capacity is 1250. fixed over heads is 1,00,000.
when ever actual capacity is greater than normal, so allocation of fixed over heads is under actual capacity.
so over heads per hour is 80.
then fixed over heads absorption will not exceed 1,00,000
when ever actual capacity is greater than normal, so allocation of fixed over heads is under actual capacity.
so over heads per hour is 80.
then fixed over heads absorption will not exceed 1,00,000
Recent Threads
- Exports against INR PO payable by Domestic Company
- Which websites are best for government exam prepar
- TDS on maturity payment of LIC of india
- ITR2 Gold ETF short and long term
- Query under faceless assessment
- Purchase of business
- Refund of ITC for advance paid to overseas supplie
- Clubbing query (when gifts given to multiple fami
- Transfer Pricing Audit Upload Form 3CEB - Income T
- Only a Few Pages Indexed by Google Despite Sitemap
Related Threads
CAclubindia
