detail for its activities and its product at the start of the period: Budgeted overhead = £400,000 Budgeted output in units = 25,000 units Bentley’s actual results at the end of the period were: Actual overhead = £380,000 Actual output = 24,500 units If Boston absorbs overheads based on the number of units produced, the business will have under/over-absorbed overheads by how much at the end of the period?
detail for its activities and its product at the start of the period: Budgeted overhead = £400,000 Budgeted output in units = 25,000 units Bentley’s actual results at the end of the period were: Actual overhead = £380,000 Actual output = 24,500 units If Boston absorbs overheads based on the number of units produced, the business will have under/over-absorbed overheads by how much at the end of the period?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Boston Ltd makes a single product and provides the following detail for its activities and its product at the start of the period:
Budgeted overhead = £400,000
Budgeted output in units = 25,000 units
Bentley’s actual results at the end of the period were: Actual overhead = £380,000
Actual output = 24,500 units
If Boston absorbs overheads based on the number of units produced, the business will have under/over-absorbed overheads by how much at the end of the period?
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