[Latchmie]

A cost centre is charged with the following actual overhead costs for a period:
Allocated costs: $ 28720
Apportioned costs: $10260

Overheads were absorbed in the cost centre over the period on 1760 actual labour hours at a predetermined absorption rate of $ 21.50 per hour. Actual labour hours worked in the period were 90 hours above budget. What was the over/under absorption in the cost centre?

Your help is very much appreciated.

[Author]

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