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What is meant by over absorbed fixed overhead?

Over absorption of fixed cost occur when the actual level of activity exceeds the normal level of activity (normal capacity).

Over absorbed overhead = excess of the actual level of activity over the normal level of activity Ⅹ fixed overhead rate per unit.

If there is over absorption, then while comparing the profit calculated under absorption costing with the profit calculated under marginal costing, along with over absorbed fixed overhead, the profit under absorption costing will eventually look higher. Alternatively, by reducing the over absorbed fixed overhead from the cost of production, the same level can be achieved

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