In a manufacturing business, the following situations may happen. 1. The actual overheads paid are lower than the budgeted overheads. 2. The actual overheads paid are higher than the budgeted overheads. 3. The actual number of units produced is lower than the budgeted number of units. 4. The actual number of units produced is higher than the budgeted number of units. Which of these situations would lead to under absorption of overhead expenditure?
- A1 and 3
- B1 and 4
- C2 and 3
- D2 and 4