Absorption Costing Flashcards
1
Q
OAR per Unit
A
Total budgeted OH / total units
2
Q
OAR per labour hour
A
Total budgeted OH / total labour hrs
3
Q
OAR per machine hour
A
Total budgeted OH / total machine hrs
4
Q
OH absorbed per unit
A
OAR (per machine/ labour hour) X hrs per unit
5
Q
Total cost per unit
A
Direct cost per unit + absorbed OH per unit
6
Q
Profit (absorption costing)
A
Sales revenue - total costs
