Production overheads are absorbed into production units by the use of an overhead absorption rate. Which one of the following best describes how the absorption rate is calculated?

(A) Total number of units produced divided by the total cost centre overheads.
(B) Total number of units produced multiplied by the unit overhead cost.
(C) otal cost centre overheads divided by the cost centre activity level.
(D) Total indirect costs for the business divided by the total number of units produced.

Related Posts 👇

Leave a Reply

Your email address will not be published. Required fields are marked *

error: Content is protected !!