Under/ Over absorbed overheads | Illustration 8 | Practical Que 7, 8 & 11 | Sep 25/ Jan 26/ May 26

You can turn on subtitles of your preferred language for this video by clicking on Settings → Subtitles/ CC → Auto Translate → Choose your preferred Language This video covers Concepts of Under/ Over absorbed Overheads, Illustration 8, Practical Question 7, 8 & 11 and Case Scenario based MCQs of Module (May-25 edition) (Same as RTP May-24 Case Scenario 3) to 13 of Chapter 4 - Overheads - Absorption Costing Method. It is Part 6 of Chapter 4 - Overheads - Absorption Costing Method of Paper 4 - Cost and Management Accounting for CA Inter. It is based on ICAI Study Material (Modules). It is relevant for CA Inter May-2024 attempt onwards (Sept 25/ Jan 26/ May 26). It is relevant for ICAI New Scheme of Education and Training (New Course of CA Inter). It is helpful in understanding the concept and to remember as well. Time Stamp 00:00 Introduction 01:46 Revision of concepts 05:54 Under/over absorbed Overheads (Treatment of Under/Over absorbed overheads) 26:16 CA Inter Costing Chapter 4 Illustration 8 31:44 CA Inter Costing Chapter 4 Practical Question 7 36:30 CA Inter Costing Chapter 4 Practical Question 8 40:42 CA Inter Costing Chapter 4 Practical Question 11 47:10 CA Inter Costing Chapter 4 Case Scenario based MCQs Follow on: Telegram Handle: @krupenhathi Telegram Channel (For CA Inter): https://t.me/caintercakrupenhathi Telegram Channel (For CA Final): https://t.me/cafinalcakrupenhathi LinkedIn:   / krupen-hathi-834772185   Instagram: https://instagram.com/krupenhathi?igs... Twitter (X): https://twitter.com/KrupenH?t=dWtg8G_... Facebook:   / krupen.hathi   Contact: [email protected] This video contains following questions: Illustration 8 of Overheads (CA Inter Costing Chapter 4): The total overhead expenses of a factory is ` 4,46,380. Taking into account the normal working of the factory, overhead was recovered in production at ` 1.25 per hour. The actual hours worked were 2,93,104. STATE how would you proceed to close the books of accounts, assuming that besides 7,800 units produced of which 7,000 were sold, there were 200 equivalent units in work-in-progress? On investigation, it was found that 50% of the unabsorbed overhead was on account of increase in the cost of indirect materials and indirect labour and the remaining 50% was due to factory inefficiency. Practical Question 7 of Overheads (CA Inter Costing Chapter 4): In a factory, overheads of a particular department are recovered on the basis of ` 5 per machine hour. The total expenses incurred and the actual machine hours for the department for the month of August were ` 80,000 and 10,000 hours respectively. Of the amount of ` 80,000, ` 15,000 became payable due to an award of the Labour Court and ` 5,000 was in respect of expenses of the previous year booked in the current month (August). Actual production was 40,000 units, of which 30,000 units were sold. On analysing the reasons, it was found that 60% of the under-absorbed overhead was due to defective planning and the rest was attributed to normal cost increase. SHOW the treatment of over/under-absorbed overhead in the cost accounts? Practical Question 8 of Overheads (CA Inter Costing Chapter 4): In a manufacturing unit, factory overhead was recovered at a pre-determined rate of ` 25 per man-day. The total factory overhead expenses incurred and the man-days actually worked were ` 41.50 lakhs and 1.5 lakh man-days respectively. Out of the 40,000 units produced during a period, 30,000 were sold. On analysing the reasons, it was found that 60% of the unabsorbed overheads were due to defective planning and the rest were attributable to increase in overhead costs. EXPLAIN how would unabsorbed overheads be treated in Cost Accounts? Practical Question 11 of Overheads (CA Inter Costing Chapter 4) ABC Ltd. manufactures a single product and absorbs the production overheads at a pre-determined rate of ` 10 per machine hour. At the end of current financial year, it has been found that actual production overheads incurred were ` 6,00,000. It included ` 45,000 on account of ‘written off’ obsolete stores and ` 30,000 being the wages paid for the strike period under an award. #cakrupenhathi #overheads #questionsoverheads #caintercosting #costingoverheads