Accounting · Management Accounting
An organisation absorbs overheads on a machine hour basis. The planned level of activity for last month was 30,000 machine hours with a total overhead cost of $247,500. Actual results showed that 28,000 machine hours were recorded with a total overhead cost of $238,000. What was the total under absorption of overheads last month?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$16,500
- 2$9,500
- 3$7,500
- 4$7,000✓
Correct answer
$7,000
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