Absorption rate formula aat
Aug 12, 2019 Based on this information, the rate of absorption is determined to be $40 per machine hour (calculated as $240,000 overhead costs divided by Basis (Methods) for Calculating Overhead Absorption Rate: The production overheads calculated for each production department after going through Figure 1 – Overheads allocation, apportionment and absorption using pre- determined overhead absorption rates. (Source: BAFS in the New World, Accounting