A company applies overheads on the basis of machine hours. The information below is provided. Budgeted overheads are $200000 for 40000 machine hours. Actual overheads are $240000 for 60000 machine hours. Calculate the over or under absorption of overheads.
- A$40000 over
- B$40000 under
- C$60000 over
- D$60000 under