Overhead cost interview questions and answers

Overhead Cost is the total of all indirect costs which includes indirect material cost, indirect labour cost, and indirect expenses…
There are three ways of charging overheads: - Primary Apportionment, Secondary Apportionment, Absorption…
Simultaneous equation method - is the method where the amount of each production department can be obtained by solving simultaneous method. ..
Following are the various methods used for deciding the rates of overhead absorption:..
Under absorbed factory overheads: this situation arises if the overheads absorbed are less than the actual overheads….
Direct material cost percentage rate: - (Amount of overheads to be absorbed X 100) / (Direct Materials Cost)