Which method of absorption of factory overheads would you suggest in a concern which produces only one uniform item of product —

CS Executive · Cost and Management Accounting · PYQS · December 2015
Which method of absorption of factory overheads would you suggest in a concern which produces only one uniform item of product —
(A) Percentage of direct wage basis
(B) Direct labour hour rate
(C) Machine-hour rate
(D) Rate per unit output.

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Overhead Costing

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