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…

CA Intermediate · Cost and Management Accounting · MTP · September 2026
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
(A) (A) 5,000 under-absorbed
(B) (B) 8,800 under-absorbed
(C) (C) 8,800 over-absorbed
(D) (D) ₹5,000 over-absorbed

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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