Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

A business allocates overheads on the basis of machine hours. In the most recent quarter, its budgeted and actual figures were: - actual overheads: $127346$ - actual machine hours: $5490$ - budgeted overheads: $129375$ - budgeted machine hours: $5625$ Calculate the amount by which overheads were under-absorbed or over-absorbed.

  • Aover absorbed by $1076$
  • Bover absorbed by $2029$
  • Cunder absorbed by $1076$
  • Dunder absorbed by $2029$

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