Overheads Flashcards
1
Q
What is apportionment?
A
Overhead shared over various centres on a suitable basis.
2
Q
What is re-apportionment?
A
Apportion the service cost centre to production.
3
Q
What is absorption?
A
Charging the cost of the overheads to production cost unit.
Budget overhead / Budgeted activity.
4
Q
What is under / over absorption?
A
Absorbed > Actual = over
Absorbed
5
Q
Integrated bookkeeping - overheads
A
Actual overheads - Dr POCA
Overheads absorbed - Cr POCA Dr Production
Balance posted to P/L
6
Q
What is allocation?
A
If an overhead relates to one production or service it can be allocated.
