Mathematics · Cost Accounting
An organisation absorbs overheads on a machine hour basis. The following data is given: - Planned level of activity: 30,000 machine hours - Budgeted overhead cost: $247,500 - Actual machine hours: 28,000 - Actual overheads incurred: $238,000 What was the total under-absorption of overheads?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$9,500
- 2$6,000
- 3$4,000
- 4$7,000✓
Correct answer
$7,000
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