A cost centre had an overhead absorption rate of $4.25 per machine hour, based on a budgeted activity level of 12,400 machine hours.In the period covered by the budget, actual machine hours worked were 2% more than the budgeted hours and the actual overhead expenditure incurred in the cost centre was $56,389.What was the total over or under absorption of overheads in the cost centre for the period?
A、$1,054 over absorbed
B、$2,635 under absorbed
C、$3,689 over absorbed
D、$3,689 under absorbed
A、$1,054 over absorbed
B、$2,635 under absorbed
C、$3,689 over absorbed
D、$3,689 under absorbed
【参考答案及解析】
$ Absorbed overhead (12,400 x 1.02 x $4.25) 53,754 Actual overhead 56,389 Under-absorbed overhead 2,635
$ Absorbed overhead (12,400 x 1.02 x $4.25) 53,754 Actual overhead 56,389 Under-absorbed overhead 2,635