(Chapter 8)
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| Brad Co absorbs production overhead in the assembly department on the basis of direct labour hours. Budgeted direct labour hours for the period were 300,000. The production overhead absorption rate for the period was $3 per direct labour hour. Actual results for the period were as follows. Direct labour hours worked 320,000 Production overheads incurred $930,000 Over-absorbed production overhead A $20,000 B $30,000 C $40,000 D $10,000 (2 |