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A company absorbs fixed production overheads in one of its departments on the basis of machine hours. There were 100,000 budgeted machine hours for the forthcoming period. The fixed production overhead absorption rate was $2.50 per machine hour. During the period, the following actual results were recorded:
What was the fixed production overhead under/over absorption amount? A. Under absorbed by $50,000 B. Over absorbed by $50,000 C. Over absorbed by $25,000 D. Under absorbed by $25,000 |