Page 45 - UNISA Manac Cost Course Slides Part 1
P. 45
TEST 3 - COSTING
Costing variances – example 1
At beginning of period:
Allocation rate = Budgeted overhead/ Normal capacity
= 200 000 / 20 000 units
Units, machine
= R10 per unit hours, labour
hours, etc.
During period:
Absorbed overhead = Allocation rate x actual production
= R10 x 21 000 units
= R210 000
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