banner_ad

AS - 2

Indian Accounting Standards 318 views 3 replies
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 ?
Replies (3)

when company actually works at more than normal capacity level, allocation of fixed overheads under Actual Capacity.

Fixed ohd absorption can never be more than actually incurred ! how can u charge more expense than actually incurred  ? 

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


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
22 May 2026
U.S. Financial Reporting & Consolidation Manager

Karia Overseas

Ahmedabad

CA

View Details
Company
Featured 28 May 2026
SEMI QUALIFIED/ CA DROPOUTS/ ARTICLES

T R SOOD & CO

New Delhi

CA Inter

View Details
Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
ARTICLESHIP 27 May 2026
CA Article Trainee

Rahul Dang & Associates-Chartered Accountants

Pune

CA Inter

View Details
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details
Company
26 May 2026
Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details