Absorption of Overheads and the Six Absorption Rates
· Chapter
COSTING — Overheads
7 microlessons in this chapter
Read each in 5 minutes. Each has worked examples + the bare-Act text for reference.
All lessons
1
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2
Blanket Rate vs Departmental Rate
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3
Capacity Determination and Types of Capacity
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4
Core Theory: Advantages of Fixed/Variable Classification, Departmentalisation, and Bases of Apportionment
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5
Machine Hour Rate Method (Direct and Comprehensive)
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6
Pre-determined Rate vs Actual Rate; Under/Over Absorption and its Treatment
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7
Secondary Distribution (Re-distribution) of Overheads
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