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| AC Co absorbs production overhead in the assembly department on the basis of direct labour hours.Budgeted direct labour hours for the period were 200,000. The production overhead absorption rate for the period was $2 per direct labour hour. Actual results for the period were as follows. Direct labour hours worked 220,000 Production overheads incurred $480,000 Which one of the following statements is correct?(2 marks) A Production overheads were $40,000 over absorbed B Production overheads were $40,000 under absorbed C Production overheads were $80,000 under absorbed D No under or over absorption occurred |