Solution-How would treat unabsorbed overheads in cost

How would treat unabsorbed overheads in cost accounts

Reference no: EM132609945

APP Limited is a manufacturing concern and recovers overheads at a pre-determined rate of Rs.250 per man-day. The following additional information of a period are also available for You:

Total factory overheads incurred Rs.55,00,000

Man-days actually worked Sales (in units) 20,000

Stock at the end of the period: 25,000

Completed units 2,500

Incomplete units (50% completed) 5,000

There was no opening stock of finished goods and works in progress. On analyzing the situation, it was discovered that 40% of the unabsorbed overheads were due to defective planning and balance were attributable to increase in overhead costs.

Question 1: How would you treat unabsorbed overheads in cost accounts?

Reference no: EM132609945

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How would treat unabsorbed overheads in cost accounts : APP Limited is a manufacturing concern and recovers overheads at a pre-determined rate of Rs.250, How would treat unabsorbed overheads in cost accounts?

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How would treat unabsorbed overheads in cost accounts

Reference no: EM132609945

Reference no: EM132609945

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