Don't know your company's procedures. The predetermined overhead rate should have been setup in the system if the previous cost accountant have it done.Ask your boss how often to update the standard overhead rate, usually once a year, depends on your company's business.
-gingerflower(Gingerflower);
2014-7-20{119}(#81375@41)
resolved!Thanks for response and i have this resolved by contacting CA firm。 Predetermined overhead rate is 100 per labour hrs. System keep track of the hrs allocated and apply the overhead to different inventory .Absorption account is used to offset overhead has been applied.
-rosedew226(ange);
2014-7-26{269}(#81426@41)