[abirul]

Wodl Co uses absorption costing and an overhead absorption rate based on machine hours. The following information is available for its Stitching department for February:

Budget Actual

Overhead costs $16,340 $17,230

Number of machine 4,300 4,250
hours

Which of the following statements about overhead absorption in the Stitching department for February are true?

Overhead costs were over-absorbed by $203
Overhead costs were under-absorbed by $203
Overhead costs were under-absorbed by $1,080
Overhead costs were over-absorbed by $1,080

Sir, if actual budget is 1080 higher than it should be why over-absorbed 1080 is wrong
Sorry sir i am huge confused about that even in Finanacial Accounting I’m getting wrong attemp in overstated and understated question in Asset Expenditure and Expenses

[Author]

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