Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

A company provides the following figures for August: budgeted machine hours: 36000 budgeted overheads: $162000 actual machine hours: 36500 actual overheads: $155000 Calculate the under or over absorption of the overheads?

  • A$2250 over absorbed
  • B$2250 under absorbed
  • C$9250 over absorbed
  • D$9250 under absorbed

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