Mathematics · Overhead Costing
Overheads are absorbed at a rate of $10 per machine hour based on 5,000 budgeted machine hours. Last month, actual overheads were $52,000 and 5,100 machine hours were worked. What is the amount of over- or under-absorbed overheads?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$2,000 over-absorbed
- 2$2,000 under-absorbed
- 3$1,000 over-absorbed
- 4$1,000 under-absorbed✓
Correct answer
$1,000 under-absorbed
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