Ajika plc has been using an overhead absorption rate of 18.25 per machine hour in its production department. During the year the overhead expenditure amounted to 628,240 and 28,848 machine hours were used. How much overhead is under or over absorbed?
Ajika plc has been using an overhead absorption rate of 18.25 per machine hour in its production department. During the year the overhead expenditure amounted to 628,240 and 28,848 machine hours were used. How much overhead is under or over absorbed?
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 4TP: If a company bases its predetermined overhead rate on 100,000 machine hours, and It actually has...
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Transcribed Image Text:Ajika plc has been using an overhead
absorption rate of 18.25 per machine hour
in its production department. During the
year the overhead expenditure amounted
to 628,240 and 28,848 machine hours were
used.
How much overhead is under or over
absorbed?
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