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Cost Accounting
book

Cost Accounting

by K. Alex
February 2012
Intermediate to advanced content levelIntermediate to advanced
756 pages
17h 6m
English
Pearson India
Content preview from Cost Accounting

8

Overhead Rates

CHAPTER OUTLINE
LEARNING OBJECTIVES

After reading this chapter, you will be able to understand:

  • Overhead rates

  • Absorption of overheads

  • Machine hour rate

8.1 INTRODUCTION

For a proper understanding of the topic, overheads are split into overhead analysis and overhead rates. In overhead rates, the calculations done are cost per unit, cost per hour, cost per machine or cost per machine hour rate (MHR). These rates are calculated to find out the method of recovery of overheads.

Overhead rates are fixed ...

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Publisher Resources

ISBN: 9789332515642