A business calculates its overhead absorption rate on the basis of direct labour hours. For the previous year, the information below is given: overheads: actual $120000$, budgeted $100000$ direct labour hours: actual $10000$, budgeted $8000$ indirect labour hours: actual $2000$, budgeted $4500$ Which statement about overheads is correct?
- AThey were over absorbed by $5000$.
- BThey were under absorbed by $5000$.
- CThey were over absorbed by $24000$.
- DThey were under absorbed by $24000$.