Which of the following formula is used to calculate the overheads to be absorbed —

CS Executive · Cost and Management Accounting · PYQS · December 2014
Which of the following formula is used to calculate the overheads to be absorbed —
(A) Standard rate per hour × Standard hours produced
(B) Budgeted hours × Standard overheads rate per hour
(C) Actual hours × Standard rate per hour
(D) Actual output × Actual overheads rate per unit.

Answer & Explanation:

Correct Answer: Option (A)

Correct answer: (A) Standard rate per hour × Standard hours produced.

Topics: Overhead Costing

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