The below mentioned article provides a note on production overhead. The production cost is inclusive of all direct material, direct labour, direct expenses and manufacturing expenses. The manufacturing expenses is inclusive of all indirect materials, indirect labour and indirect expenses concerned with manufacturing activity which starts with supply of materials and ends with primary packing of the product. Production cost [...]
In this article we will discuss about the single and departmental overhead absorption rates. Single Overhead Absorption Rate: It is also called as 'blanket overhead absorption rate'. It is a common absorption rate used throughout a factory and for all jobs and units of output irrespective of the departments in which they were produced or processed. It is a one [...]
In this article we will discuss about the re-apportionment of service centre costs. Also learn about the methods generally used in allocation of service department costs. Service departments may exist to provide services of various kinds to other departments. For example, personnel, maintenance, boiler house, pump house, power generation departments are service departments which provide service to the production and [...]