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A company absorbs production overheads on a machine hour basis. The following data relates to last year
Budget Actual
Machine hours 2500 2400total production overheads 50000 47000
What was the total over or under absorption of production overheads last year?
$3,000 over absorbed
$1,000 over absorbed
$3,000 under absorbed
$2,000 under absorbedmy answer is 1000 overabsorbed, is it correct mr moffat?
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