d) A company uses an overhead absorption rate of $3.50 per machine hour, based on 32,000 budgeted machine hours for the period. During the same period the actual total overhead expenditure amounted to $108,875 and 30,000 machine hours were recorded on actual production. By how much was the total overhead under or over absorbed for the period?+ a.Under absorbed by $3,875+ b.Under absorbed by $7,000+ c.Over absorbed by $3,875+ d.Over absorbed by $7,000
d) A company uses an overhead absorption rate of $3.50 per machine hour, based on 32,000 budgeted machine hours for the period. During the same period the actual total overhead expenditure amounted to $108,875 and 30,000 machine hours were recorded on actual production. By how much was the total overhead under or over absorbed for the period?+ a.Under absorbed by $3,875+ b.Under absorbed by $7,000+ c.Over absorbed by $3,875+ d.Over absorbed by $7,000
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 11PB: When setting its predetermined overhead application rate. Tasty Turtle estimated its overhead would...
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![d) A company uses an overhead absorption rate of $3.50 per machine hour,
based on 32,000 budgeted machine hours for the period. During the same
period the actual total overhead expenditure amounted to $108,875 and 30,000
machine hours were recorded on actual production.
By how much was the total overhead under or over absorbed for the period?+
a.Under absorbed by $3,875+
b. Under absorbed by $7,000+
c. Over absorbed by $3,875+
d.Over absorbed by $7,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F00aa1976-6124-4acc-b9af-77746ddb0d68%2F19c671d7-6b7f-4943-992c-c60f917f0b44%2Fwzll3jf_processed.png&w=3840&q=75)
Transcribed Image Text:d) A company uses an overhead absorption rate of $3.50 per machine hour,
based on 32,000 budgeted machine hours for the period. During the same
period the actual total overhead expenditure amounted to $108,875 and 30,000
machine hours were recorded on actual production.
By how much was the total overhead under or over absorbed for the period?+
a.Under absorbed by $3,875+
b. Under absorbed by $7,000+
c. Over absorbed by $3,875+
d.Over absorbed by $7,000
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