CIMA BA2 - Absorption of overheads

CIMA BA2 - Absorption of overheads
First problem - more than one product produced in the same factory
Free lectures for the CIMA BA2 Fundamentals of Management Accounting
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[@xinronghao7648]

does that 7 hundred thousand cost include the direct costs?

[@opentuition]

No. Overheads are indirect costs. The direct costs are the materials and the labour.