⭐ Important points (exam-critical)
- ⭐Machine Hour Rate preferred where machine work dominates over labour.
- ⭐Simultaneous equation method most accurate for service-to-service sharing.
- ⭐If under-absorption due to abnormal causes — debit to costing P&L.
- ⭐Capacity utilisation impacts absorption rate — distinguish budgeted vs normal capacity.
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