Mathematics · Cost Accounting
A manufacturing company uses a machine hour rate to absorb production overheads, which were budgeted to be $130,500 for 9,000 machine hours. Actual overhead incurred was $128,480, and 8,800 machine hours were recorded. What was the total under-absorption of production overheads?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$1,520
- 2$2,200
- 3$2,020
- 4$880✓
Correct answer
$880
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