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HI sir, as i have said that the answer sheet of my module from class was lost so im not sure if my answers are correct
A company uses absorption costing with a predetermined hourly fixed overhead rate.
The following situations arose last year. Would each of these situations cause overheads to be under absorbed or over absorbed?
1. Actual overhead expenditure was less than the budgeted expenditure, under absorbed.
2. Actual hours worked were less than the budgeted hours used to set the predetermined overhead absorption rate, over absorbed.
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