Respected Sir,
How to allocate Fixed Overhead In Product Cost Sheet
Please Guide me.
Thanks in advance
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How to allocate fixed overhead in product cost sheet
Replies (1)
Overheads should be compulsorily classified in fixed and variable basis. as absorption treatment of fixed and variable overheads are different.
Fixed overheads should be absorbed on the products on normal capacity of the company.
Variable overheads should be absorbed on the products on actual capacity utilization.
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