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Find how would under absorbed overheads be treated

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Reference no: EM132583232

XYZ ltd. which absorbs overheads at predetermined rates provides you the following information:

Overheads actually incurred ?200000

Overheads absorbed ?150000

Goods sold 13000 units

Stock of finished goods 10000 units

Stock of work in progress 10000 units (20% complete)

Question 1: Unabsorbed overheads were due to rising price levels. How would under absorbed overheads be treated in cost accounts?

Reference no: EM132583232

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