Great thanks,got it But As Big Woof produced 40,000 fewer units than expected, there will be an under absorption of overheads of 40,000 ? $1.25 (see Step 1 above) = $50,000.
Why does BPP explain this question like “As Big Woof produced 40,000 fewer units than expected, there will be an under absorption of overheads of 40,000 ? $1.25 (see Step 1 above) = $50,000.”