A company uses an overhead absorption rate of $3.50
per machine hour, based on 32 000 budgeted machine hours for the period. During
the same period the actual total overhead expenditure amounted to $108 875 and
30 000 machine hours were recorded on actual production.

The over or under absorbed overhead
for the period was:

Question

A company uses an overhead absorption rate of $3.50
per machine hour, based on 32 000 budgeted machine hours for the period. During
the same period the actual total overhead expenditure amounted to $108 875 and
30 000 machine hours were recorded on actual production.

The over or under absorbed overhead
for the period was:

Accepted Answer

Under-absorbed overhead by $3,875

Answer

Under-absorbed overhead by $3,125

Answer

Over-absorbed overhead by $3,875

Answer

Over-absorbed overhead by $3,125

Crowdly

A company uses an overhead absorption rate of $3.50 per machine hour, based on ...

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