Using The “OUA Formula” To Determine the Over or Under-Absorbed Overhead

Abstract

This study was carried out to improve students' understanding of the Over and Under Absorbed Overhead for the topic of Overhead in the DPA30073 Cost and Management Accounting 1 course by using the “OUA Formula”. The initial survey found that students did not understand the learning content of the topic because the formulas in the form of text were too long to remember. The OUA Formula can help students learn the topic and provide positive feedback on their understanding performance. With the use of the “OUA Formula,” students can determine whether the overhead absorbed can be categorized as over or under-absorbed more efficiently. A total of 20 students were involved in this study. The study was carried out for four weeks for data collection and analysis. The action research model used is the Kemmis & Mc Taggart Model (1988). The assessment instruments used are Pre and post-tests and a questionnaire in Google form. The findings show that using the OUA Formula can increase students' understanding of the topics taught. All students gave positive feedback on the use of the “OUA Formula.”