HI FRNDS JUST WANT 2 KNOW R STANDARD & BUDGETED OVERHEAD SAME IN CONTEXT WITH STANDARD COSTING.
I THINK BUDGETED OH IS USED IN FIXED OH &
STD OH IN VARIABLE OH.
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Labour 2
Replies (1)
FIXED OVERHEADS ARE ALWAYS ABSORBED ON BUDGET CAPACITY THUS BUDGETED IS USED IN FIXED OH,FOLLOWING PRUDENCE CONCEPT
VARIABLE OH ARE ABSORBED ON ACTUAL CAPACITY...THUS STANDARDS ARE BEING SET FOR THAT
REGARDS
SRIPAL JAIN
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