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A company uses an overhead absorption rate of $3.25 per machine hour, based on 33,000 budgeted machine hours for the period. During the same period the actual total overhead expenditure amounted to $104,585 and $31,000 machine hours were recorded on actual production.
By how much was the total overhead under or over absorbed for the period.
a. under absorbed by $3,835
b. over-absorbed by $2, 665
c. under absorbed by $2,665
d.over absorbed by $3,835
This is ridiculous. I have answered three of your questions, but we are not here to simply answer test questions.
You must have an answer in the book in which you found all of these questions.
This forum is for you to ask for help when you don’t understand something – not to simply expect answers to questions.
It seems that you have also not watched our free lectures. You should watch the lectures before attempting questions.