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
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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