Accounting · Management 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 overheads incurred were $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$2,900
- 2$2,020
- 3$900
- 4$880✓
Correct answer
$880
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