A business allocates fixed overheads on the basis of direct labour hours. The information below is given: (overheads: actual $525000, budgeted $525000; direct labour hours: actual 16300, budgeted 15000; indirect labour hours: actual 2700, budgeted 2500) Which statement is correct?
- AOverheads were over absorbed by $45000.
- BOverheads were under absorbed by $45000.
- COverheads were over absorbed by $45500.
- DOverheads were under absorbed by $45500.