Page 56 - F2 Slides 2017-18
P. 56
Absorption costing
OVERHEADS
Step1 : Overhead
allocated or apportioned
to cost centres using Production Production Service Service
suitable bases Department Department Department Department
A B C D
Step 2 : Service cost
centres reapportioned to
production cost centres A B
Step 3 : Overheads
absorbed into output
Cost Unit
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