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| A company uses an overhead absorption rate of $3·50 per machine hour, based on 32,000 budgeted machine hoursfor the period. During the same period the actual total overhead expenditure amounted to $108,875 and30,000 machine hours were recorded on actual production. By how much was the total overhead under or over absorbed for the period? A.Under absorbed by $3,875 B.Under absorbed by $7,000 C.Over absorbed by $3,875 D.Over absorbed by $7,000 |