Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

A company allocates its overheads using machine hours. The information below refers to one month. Overheads: actual $237010$, budgeted $253450$ Machine hours: actual $12460$, budgeted $13700$ Which statement about overheads is correct?

  • A$6500$ over-absorbed
  • B$6500$ under-absorbed
  • C$16440$ over-absorbed
  • D$16440$ under-absorbed

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