FOAR?

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:24AM in AAT student discussion
Hiya all

Can anyone tell me what FOAR is and if it has a calculation what that is too?

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:FOAR?

    Hi

    It's the fixed overhead absorbtion rate. Remeber in absorbtion costing, it's used to apportion the indirect costs?

    Usually the calculation is Budgeted Fixed Overheads/Budgeted Labour Hours.

    However check what is said in the question as it is not always apportioned using labour hours.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:FOAR?

    sorry cant help but need to ask a queston regarding Dec 04 business tax paper how do i do it?

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