Based on the data below, what is the amount of the overhead under-/over-absorbed? Budgeted overhead - 5,25,000 Budgeted machine hours- 17,500 Actual…
CA Intermediate · Cost and Management Accounting · MTP · May 2024
Based on the data below, what is the amount of the overhead under-/over-absorbed? Budgeted overhead - 5,25,000 Budgeted machine hours- 17,500 Actual machine hours- 17,040 Actual overheads-5,20,000
Suggested Answer and Working Notes:
Correct Answer: Option (B)
B. 8,800 under-absorbed
Topics: Budgets and Budgetary Control, Overheads - Absorption Costing Method
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