[capricornsweetie]

Hi Sir
Having some trouble with this question can you please help me, thanks.

A company uses standard absorption costing. Its fixed overhead absorption rate is $8 per machine hour and each unit of production should take 3 machine hours. Last year there was an opening inventory of finished goods of 4000 units. They produced 30000 units and sold 25000 units. 90000 machine hours were used for production, and the total fixed overheads were $700000. What was the amount of the over/under absorption of fixed overheads?

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