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| A company has been using an overhead absorption rate of $5.60 per machine hour in its machining department throughout the year. During the year the overhead expenditure amounted to $275,000 and 48,000 machine hours were used. Which of the following statements is correct? A Overheads were under absorbed by $6,200. B Overheads were under absorbed by $7,600. C Overheads were over absorbed by $6,200. D Overheads were over absorbed by $7,600. |