Everything you need to know about Factory Overhead. Learn about - 1. Items of Factory Overhead 2. Examples of Factory Overhead 3. Factory Overhead Formula 4. Methods of absorption of factory overheads 5. Steps in dealing with factory overheads in cost accounts 6. Advantages and Disadvantages. What is Factory Overhead: Examples, Formula, Items, Steps, Methods and Distribution Top 15 Items [...]
Different methods of absorption discussed below are used to determine the overhead absorption rate for production overhead: 1. Percentage on Direct Material Cost 2. Direct Labour Cost Percentage Rate 3. Prime Cost Percentage Rate 4. Labour Hour Rate 5. Machine Hour Rate 6. Rate Per Unit of Output 7. Standard Rate. Method # 1. Percentage on Direct Material Cost: Under [...]
In this article we will discuss about:- 1. Meaning of Machine Hour Rate 2. Types of Machine Hour Rates 3. Computation 4. Other Points to be Borne in Mind While Computing Machine Hour Rate 5. Advantages 6. Disadvantages. Contents: Meaning of Machine Hour Rate Types of Machine Hour Rates Computation of Machine Hour Rate Other Points to be Borne in [...]