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A company uses an overhead absorption rate of $3.50 per machine our, based on 32,000 budgeted machine hours for the period. During the same period the actual total overhead expenditure amounted to $108,875 and 30,000 machine hours were recorded on actual production. By how much was the total overhead under or over absorbed for the period? A. Over absorbed by $7,000 B. Under absorbed by $3,875 C. Over absorbed by $3,875 D. Under absorbed by $7,000 |