• In this session the chapter Accounting for overheads have been explained. The chapter consists of

  • Overheads
  • Cost allocation
  • Cost apportionment
  • Bases of apportionment
  • Apportionment of service cost centre overheads to production cost centres
  • Calculation of Overhead Absorption Rates (OAR)
  • Overhead cost sharing process
  • Over absorption and under absorption of overheads
  • Reasons for over or under absorption
  • Drawbacks of using a budgeted overhead absorption rate
  • Factory wide rate
  • Benefits of absorption costing
  • Limitations of absorption costing
  • Examples

  The notes and examples have been uploaded in the exercise section.

• Session 12: Accounting for overheads

  • Accounting for overheads
    • Part 1 8 mins
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      Demo video

      Part 1

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    • Part 2 8 mins
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      Part 2

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    • Part 3 example 15 mins
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      Demo video

      Part 3 example

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• Excercise Files

  • Accounting for overheads
    • Notes and example

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