Accounting for Overheads-Kaplan Text Chapter 7- Abosprtion Costing

Morning John,

The following question has really thrown me. It’s an Absorption costing question which is linked to working backwards. It is as follows:

A business absorbs its fixed overheads on the basis of machine hours worked. The following hours are available for the month of June:

Budgeted fixed overhead $45,000
Budgeted machine hours 30,000 hours
Actual fixed overhead $49,000

If there was an over-absorption of overheads of $3,500.
How many machine hours were worked in the month?

My answer was as follows:
OAR = Budgeted Fixed OH / Budgeted Activity
OAR= $45,000 / 30,000hrs = $1.50 OAR

Actual fixed OH + over-absoprtion = Overhead Absorbed
$49,000 + $$3,500 = $52,500

$52,500 / $1.50 = 35,000 hrs

This sort of question is different to other types that I have previously encountered.
I’ve never divided by the OAR before, but I presume this is dependent upon the question requirements ?

I would assume that actual activity here is 35,000 hours ?

Thanks again John